Gold sees good buying, COMEX futures hover above $1830 per ounce

Published on Jun 16, 2022 12:18

Pull back in US treasury yields and dollar after a massive Fed rate hike by a 75 bps at its June monetary policy meeting is seen supporting gold futures on Thursday. The Federal Reserve on Wednesday announced the biggest increase in interest rates in almost thirty years in a bid to combat soaring consumer prices. The US central bank also revised up inflation forecasts for this year and the next while cutting down the inflation expectations. Further, the policymakers also signalled either a 50 bp or 75 bp rate hike in the next meeting. US 10-year Treasury yields extended losses, down 1.59% to 3.34%, which in turn weighed on the US dollar and increased appeal for the yellow metal that is higher by nearly 0.70% at $1832 an ounce. The dollar index, that measures the greenback against a basket of currencies is down 0.20% at 104.72, after rising as high as 105.79, its strongest since December 2002 post Fed rate hike decision.