Gold Falls On U.S. Rate Hike Expectations

CHICAGO, (UrduPoint / Pakistan Point News - 22nd Apr, 2023 ) --:Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as market expects that the Federal Reserve will raise the interest rate again at its May meeting.

The most active gold contract for June delivery fell 28.60 U.S. dollars, or 1.42 percent, to close at 1,990.50 Dollars per ounce.

Cleveland Federal Reserve President Loretta Mester joined other Fed presidents on Thursday in signaling support for more rate hikes to curb inflation.

"I anticipate that monetary policy will need to move somewhat further into restrictive territory this year, with the fed funds rate moving above 5 percent and the real fed funds rate staying in positive territory for some time," Mester said in a speech in Akron, Ohio.

Market analysts hold that chances of another 25 basis point hike at the Fed's May meeting are higher than 80 percent.