Gold prices fell after comments from Federal Reserve members and a focus on consumers.

The spot price of gold fell on Tuesday with gains in the U.S. dollar and potential hints about the future of interest rates from Federal Reserve officials.

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Kashkari

Parkin

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On Tuesday, the president of the Federal Reserve Bank of Minneapolis,
Neel Kashkari, said it is likely that interest rates will remain at their current levels
“for an extended period of time.”

The president of the Federal Reserve Bank of Richmond,
Thomas Parkin, said yesterday that he sees the U.S. economy slowing down,
which would further ease inflation.

More comments are expected later in the week from other Federal Reserve speakers.

The spot price of gold fell by 1% to $2308 per ounce,
as the U.S. dollar rose against the British pound and yen,
with a focus on comments from several Federal Reserve officials
that could give hints about the future of interest rates.

Kashkari

Kashkari from the Federal Reserve suggests interest rates might stay high “for an extended period”

On Tuesday, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, said that interest rates are likely to remain at their highest current levels for 23 years “for a long period of time.” Kashkari noted that he expects inflation to move “sideways” for a while, prompting the Federal Reserve to keep interest rates steady. Concerns about when the Federal Reserve might lower interest rates could negatively affect the price of gold.

Parkin

Parkin, a Federal Reserve governor, sees a slowdown in the U.S. economy

The president of the Federal Reserve Bank of Richmond, Thomas Parkin,
said yesterday that he sees the U.S. economy slowing down,
which would further ease inflation. He added that recent volatility in economic data has supported the Federal Reserve’s decision to take its time in lowering borrowing costs.

More Federal Reserve speakers are scheduled to make comments this week

Speeches are also scheduled this week from several other Federal Reserve speakers.
In addition, the University of Michigan’s consumer confidence index will be released on Friday, providing insight into consumers’ feelings about inflation and where it is headed.

Despite the drop, the price of gold has remained up by approximately 12% for 2024 so far.

Gold prices fell after comments from Federal Reserve members

Gold prices fell after comments from Federal Reserve members

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