GOLD (June 16) Recovers sharp early losses as USDX sinks
Gold prices are posting mild gains in midday U.S. trading Thursday but are near their daily highs. The yellow metal has rebounded from sharp overnight losses that pushed prices to a three-month low.
Still, gains in gold have been constrained after the end of this week's FOMC meeting of the Federal Reserve, in which the Fed paused on its rate-hike cycle, but the FOMC statement and Fed Chair Powell's press conference leaned firmly hawkish on U.S. monetary policy. The Fed's so-called “hawkish pause” initially pushed the U.S. dollar index and U.S. Treasury yields higher.
However, a downbeat U.S. industrial production report today helped to pressure the USDX and drop Treasury yields. The European Central Bank today raised its main interest rate by 25 basis points, as expected.
Still, gains in gold have been constrained after the end of this week's FOMC meeting of the Federal Reserve, in which the Fed paused on its rate-hike cycle, but the FOMC statement and Fed Chair Powell's press conference leaned firmly hawkish on U.S. monetary policy. The Fed's so-called “hawkish pause” initially pushed the U.S. dollar index and U.S. Treasury yields higher.
However, a downbeat U.S. industrial production report today helped to pressure the USDX and drop Treasury yields. The European Central Bank today raised its main interest rate by 25 basis points, as expected.
