Hawkish Fed pressure on gold

Gold gained value last week after US inflation came in below expectations, but it fell on Fed Governor Christopher Waller’s hawkish comments on interest rates. Gold was pressured downward by the dollar rising after Fed Governor Christopher Waller’s statements that the Fed was not close to stopping interest rate hikes as inflation rose. Gold tested below $1,759 an ounce in the spot market. The aggressive monetary policy tightening implemented this year had increased the dollar while increasing pressure on spot gold. Although spot gold achieved its biggest weekly increase since March 2020 last week when inflation data came in below expectations, Fed Governor Christopher Waller’s hawkish comments caused the dollar to rise. Waller said at the UBS Group AG conference in Sydney, “Interest rates will continue to rise and they will remain high for some time until we see inflation approach our target level. We still have a long way to go. This will not end in the next one or two meetings.”