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As markets reevaluate Fed concerns, gold traded flat at $2,000 per ounce.

17 Apr,2023
As markets reevaluate Fed concerns, gold traded flat at $2,000 per ounce.

Gold prices muted on Monday, after hawkish remarks from Federal Reserve officials on the trajectory of interest rate hikes sparked a significant amount of profit taking in the previous session.

On Friday, the price of gold dropped by around 2% when prominent Fed hawk Governor Christopher Waller advocated for further monetary tightening despite recent statistics showing that U.S. inflation has been steadily declining from 40-year highs reached last year.

Gold futures dipped 0.1% to $2,002.49 per ounce, while gold futures muted at $2,015.25 per ounce.

Last week, both instruments had gotten stronger and were trading roughly $40 below their all-time highs.

Hiking US interest rates through 2022 had a significant negative impact for gold and other non-yielding assets, but this year, as bulls anticipated the end of further rate increases, they experienced a fast recovery. Fed Fund futures pricing continue to indicate that the market is preparing for one more rate increase in May, followed by a pause in June.

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