- Gold traded around $4,290 an ounce after a 1.7% drop, pressured by resurgent energy prices and stronger-than-expected US economic data that raised Fed rate-hike bets.
- Fed policymakers reaffirmed support for last week’s rate hike and warned of inflation risks; the 10-year Treasury yield rose to multiyear highs and the dollar strengthened, hitting gold futures and gold ETFs.
- Oil rose after Iranian President Masoud Pezeshkian told the United Nations Iran will not allow freedom of navigation through the Strait of Hormuz while sanctions and a US blockade remain in place.
- With gold above $4,000, Lake Victoria Gold moved a toll-milling arrangement forward at its Tembo project to avoid building a new plant, highlighting processing capacity as an industry bottleneck.
Quotes
“Gold held a decline as resurgent energy prices and stronger-than-expected US economic data increased bets the Federal Reserve might again raise interest rates to combat inflation.”
“Gold futures fell sharply Wednesday as the U.S. dollar strengthened and Treasury yields rose to multiyear highs, with Federal Reserve policymakers reaffirming support for last week’s rate hike and warning of inflation risks.”
“despite high gold prices, processing capacity is a major industry "bottleneck,”