The update also notes that CME Group’s FedWatch tool indicated that the probability that the Fed would lift interest rates in March - the first time since the onset of the pandemic - rose to greater than 70%.
Gold prices fell amidst stronger signals from the US Federal Reserve that rates may be raised sooner or faster than expected, a Jan 6 market update by Phillip Futures highlights.
“Gold prices slumped as the minutes of last month's Federal Open Market Committee (FOMC) meeting indicated with even more conviction than investors had expected that Fed policymakers are more concerned about inflation getting out of hand,” the market update reads.
