old rose for a third day as the dollar continued to decline, with the Federal Reserve’s latest meeting minutes showing officials support moderating the pace of interest-rate increases.
A “substantial majority” of policymakers believe slowing the pace of rate hikes will probably soon be appropriate, the minutes show. Investors now expect the Fed to opt for a 50-basis-point increase next month, instead of the super-sized increases seen at previous meetings.
Aggressive monetary tightening by the US central bank has weighed on bullion throughout the year by pushing up the dollar and bond yields. The metal has recovered about 8% this month, driven by bets on a slowdown in rate hikes following two cooler-than-expected inflation prints.
The willingness of the Federal Reserve to hike rates faster than just about every other major central bank has been the primary support for the US Dollar. As the persistency of that hiking policy is now in doubt, the Dollar Index has been rolling over.Click HERE to subscribe to Fuller Treacy Money Back to top