Gold rebounds from near 11-month low as U.S. dollar retreats
BNN Bloomberg
Gold rebounded from last week’s 11-month low, supported by a weakening U.S. dollar as traders pare back expectations of aggressive Federal Reserve interest-rate hikes.
Prices bounced as much as 0.9 per cent on Monday as the dollar declined for a second day, taking some of the strain off the non-interest bearing precious metal after the prospect of a super-sized rate hike helped spark a fifth straight week of losses.
Federal Reserve officials are on track to raise rates by 75 basis points for the second consecutive month when they meet later in July, after policy makers pushed back against a bigger hike. Investors reversed bets on a full percentage-point move after wary comments from officials including Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard, along with a drop in US consumer long-term inflation expectations, which eased some fears that price pressures are becoming entrenched.
