A hawkish outlook on the Fed bodes poorly for gold, given that it encourages losing opportunities to hold the non-yielding yellow metal. This notion weighs heavily on gold as far back as 2023, with the US dollar largely performing better than gold.
Markets are pricing in a more than 75 percent chance that the Fed will raise rates by 25 basis points in July, and another hike of the same magnitude later in the year.
In other precious metals, silver for September delivery fell 6.40 cents, or 0.28 percent, to close at 23.084 US dollars per ounce. Platinum for October delivery slipped $9.10, or 0.97 percent, to settle at $924.90 per ounce.
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