Gold prices dropped back below $2,000 per ounce in early trade on Friday as senior Federal Reserve officials assessed the likelihood of more interest-rate hikes to come.
Price action
-
Gold futures for June delivery
GC00,
-0.77% GCM23,
-0.77%
fell by $20, or 1%, to $1,998 per ounce. -
Silver futures for May delivery
SI00,
+0.03% SIK23,
+0.03%
declined by 9 cents, or 0.4%, to $25.28 per ounce. -
Palladium for June delivery
PAM23,
+2.13%
increased by $16, or 1%, to $1,604 per ounce, while platinum for July
PLN23,
+3.60%
increased by $9.90, or 0.9%, to $1,117 per ounce. -
Copper for May delivery
HGK23,
-0.73%
declined by 2 cents, or 0.4%, to $4.008 per pound.
Market drivers
Gold’s multi-week rally has hit a lull as senior Fed officials have backed another interest rate hike at the Fed’s upcoming meeting in May.
“Fed Bank of Cleveland President Loretta Mester was the latest hawkish voice by stating her support for another rate hike while keeping one eye on any ongoing fallout from last month’s US banking crisis,” said Rupert Rowling, a market analyst for Kinesis Money.
Chances of another 25 basis point hike at the Fed’s upcoming May meeting are higher than 80%, according to CME’s FedWatch tool, which tracks trading in the Fed funds futures market, used by traders to hedge the direction of interest rates.
