WASHINGTON (dpa-AFX) - Gold prices hit 29-month lows on Wednesday as hawkish comments from a slew of Fed officials lifted the dollar to a fresh 20-year highs against a basket of major rivals.
Spot gold fell 0.6 percent to $1,618.85 per ounce, while U.S. gold futures were down 0.6 percent at $1,626.
The dollar rallied after Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Federal Reserve Bank President Neel Kashkari all said they need to keep raising rates to restore price stability.
San Francisco Fed President Mary Daly said that the Fed wants lower inflation but not a recession.
The continuing global bond rout pushed 10-year Treasury yields to the highest since 2008 as investors brace for more aggressive tightening cycle from the U.S. Federal Reserve, the European Central Bank and the Bank of England.
Meanwhile, the White House Economic Adviser Brian Deese remarked that a global accord to adjust the value of the U.S. currency is unlikely to happen for the time being.
Deese said that the strength of the dollar is due to the strength of the economy and a highly uncertain economic outlook.
In economic releases, U.S. wholesale inventories, advance goods trade balance and pending home sales, all for August, will be published in the New York session.
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