Gold prices down as Fed officials signal more interest rate hikes

Gold prices retreated today, Aug. 11, as statements by US Federal Reserve officials pointed towards further interest rate hikes, despite the slowdown in inflation.

Gold futures for December delivery shed 0.68% to $1,801.4 an ounce at 10:45 am Makkah time. Similarly, spot prices fell 0.29% to $1,787.16 per ounce.

Likewise, silver futures for September delivery weakened 1.21% to $20.49 an ounce. The spot price for platinum, meanwhile, gained 1.61% to $958.85, with the spot price of palladium also up 0.26% to $2,251.46 per ounce.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, declined 0.21% to 104.9 points.

In an interview with Financial Times, San Francisco Fed President Mary Daly warned it is far too early for the US central bank to “declare victory” in its fight against elevated inflation.

Minneapolis Fed President Neil Kashkari said he wants interest rates to reach 3.9% and 4.4% by the end of 2022 and 2023, respectively.