A Hawkish Fed Tone Could Take Nugget From Gold Price
An unexpectedly hawkish Federal Reserve could put significant pressure on the price of gold and push the metal to $1200 a troy ounce, some analysts say.
Metal investors have all but priced in expectations that the Federal Open Market Committee will increase interest rates when it concludes its meeting Wednesday, helping send the gold price down 1.65% since last Tuesday.
On Wednesday, weaker-than-expected U.S. economic data decreased the chance of the Fed being more hawkish than expected, which helped send the gold price up by 0.87% to $1,276 a troy ounce in London trading. But any sign of unanticipated hawkishness and gold could take a big knock, some analysts say… Read Full Article