Gold Holds Decline on Fed Hike Worries

gold prices

GOLD :prices held below $1,750 an ounce on Monday after tumbling 3% last week, as a string of hawkish remarks from US policymakers lifted the dollar and Treasury yields, while denting bullion demand.

Last week, a number of Federal Reserve officials stressed the need to keep raising borrowing costs to get ahead of inflation.

St. Louis Fed Bank President James Bullard said he is considering support for a third straight 75-basis point rate hike in September and added he is not ready to say the economy has seen the worst of the inflation surge.

Meanwhile, markets are currently priced for a slightly higher chance of a 50 basis point rate increase in September.

Investors now look ahead to Fed Chair Jerome Powell’s speech at the annual symposium in Jackson Hole, Wyoming this week to guide the outlook for US monetary policy.