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Gold Under Severe Stress On Firm US Dollar

Published on Jun 17, 2021 12:41

COMEX Gold futures tumbled in last session, adding to recent losses after the metal fell under $1900 per ounce mark. The commodity is witnessing highly volatile trades and currently trades down 2.66% at $1812 per ounce. The metal has tested a one month low as the US Fed swung in the action. The US Federal Reserve kept interest rates at zero and monthly bond buying steady. Progress on vaccinations has reduced the spread of Covid-19 in the United States, the Fed said in a statement released Wednesday following the conclusion of its two-day policy meeting. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened. The Fed hiked its interest-rate outlook in 2023 to 0.6% from previous projections of 0.1% in March, signaling two 0.25% rate hikes in 2023. This came as a bit of a surprise for the markets and the US dollar saw a sharp spurt following the Fed statement. The Dollar index jumped to a six week high above 91 mark and kept commodities under stress.

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