Metal loses ground as traders await the outcome of the US Federal Reserve meeting where the tapering of stimulus is expected to be discussed
A gold necklace and earrings displayed inside a Titan Co Tanishq jewellery store during the festival of Dhanteras in Mumbai, India, on November 2 2021. Picture: BLOOMBERG/DHIRAJ SINGH
Gold is traditionally viewed as a hedge against inflation, but reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of holding bullion, which pays no interest.The Fed is expected to announce the start of stimulus tapering at its policy announcement at 2pm GMT. It is likely to begin paring its monthly asset purchases by $15bn each month until ending them by mid-2022.
“In the short term, gold could remain under pressure because a lot of central banks will be tilted towards normalising monetary policy, gradually tapering their asset purchases, especially higher inflation,” Hitesh Jain, lead analyst at Mumbai-based Yes Securities said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Global stocks remain at record highs as all eyes turn to the FedEquities hover at record highs while currency markets and US treasuries are steady as investors await the expected tapering of stimulus
Read more »
Global stocks remain at record highs as all eyes turn to the FedEquities hover at record highs while currency markets and US treasuries are steady as investors await the expected tapering of stimulus
Read more »
Diversification: the only free lunch in investingGold might not be perfect, but it can balance out disinflationary boom assets
Read more »
Diversification: the only free lunch in investingGold might not be perfect, but it can balance out disinflationary boom assets
Read more »
World Rugby mum on Rassie misconduct hearing verdict | SportSA Rugby and its director of rugby Rassie Erasmus' independent misconduct hearings were completed over the weekend but it's unclear when World Rugby will provide a verdict. | Sport24news
Read more »
Tshwane voters want change, but low turnout is worrying | CitypressChange – that’s what the residents who turned out to vote in Slovoville, Winterveld in Tshwane want.
Read more »