Gold price holding steady loss as Federal Reserve remains focused on inflation threat

8.18.22 - Inflation-Weary Shoppers Pulling Back

Gold last traded at $1,758 an ounce. Silver at $19.52 an ounce.

NEWS SUMMARY: Precious metal prices steadied Thursday amid a firmer dollar and falling home sales. U.S. stocks traded mixed as investors digested retail earnings and downbeat forecasts.

Kitco--"Gold prices remain under pressure but are largely ignoring the minutes from the Federal Reserve's July monetary policy meeting, even as the central banks continue to focus on the ongoing inflation threat.

The minutes showed that the committee continues to see inflation as a significant risk to the economy.

'Participants observed that inflation remained unacceptably high and was well above the Committee's longer-run goal of 2 percent,' the minutes said. 'Participants also noted that the high cost of living was an especially great burden on low- and middle-income households. Participants agreed that there was little evidence to date that inflation pressures were subsiding.'....

Many analysts have noted that gold has managed to hold up well as investors are expecting the U.S. central bank to reserve course on interest rates by mid-2023.

The market expects the Federal Reserve to continue to raise interest rates aggressively next month. Markets are roughly split 50/50 on whether it will be a 50-basis point move or a 75-basis point move."