Gold holds ground despite Fed's rate rise signals

1.18.22 - Gold Holds Ground Despite Fed Rate Signals

Gold last traded at $1,814 an ounce. Silver at $23.56 an ounce.

NEWS SUMMARY: Precious metal prices traded mixed Tuesday as rising interest rates boosted the dollar. U.S. stocks fell sharply after Goldman Sachs reported disappointing earnings and as government bond yields hit Covid-era highs.

Reuters/Kitco

"Gold prices held their ground on Monday, with gains capped by expectations of monetary policy tightening in the United States.

Spot gold rose 0.1% to $1,819.41 an ounce while U.S. gold futures also edged up by 0.1% to $1,818.80. U.S. markets were closed for a public holiday.

'A tightening money policy could have negative impacts on gold, but despite that gold has been holding up very well. I think it's mainly because the overall Fed balance sheet is still at elevated levels,' said Xiao Fu, head of commodities markets strategy at Bank of China International....

The focus is now on the U.S. Federal Reserve's Jan. 25-26 meeting after policymakers signaled that they would start raising interest rates in March to tame inflation."