The Fed is expected to raise interest rates this week for the first time since late 2018. Economists anticipate it will be the first of many rate hikes. The wait caused gold to steady on Wednesday, with a weaker dollar offsetting pressure from higher U.S. Treasury yields. Fox News takes a look at how the hikes will impact Americans and the shifts it will cause in consumer behavior.

 

Kitco News/Anna Golubova
Fed in focus: gold price gets pulled closer to $1,900, here’s what to expect next

The extremely volatile commodity sector continues to weigh on gold as markets shift their focus to the Federal Reserve’s expected 25 basis rate hike on Wednesday.

At one point, gold lost $50 on Tuesday as oil prices and other raw commodities tumbled. Oil fell below $100, with West Texas Intermediate crude futures and Brent down about 5% on the day and last trading at $97.39 and $101.24 per barrel, respectively.

“It seems the gold market is a victim of the abandon widespread commodity appreciation trade. Gold prices are trying to find a floor and eventually will stabilize even if oil prices continue to slide,” said OANDA senior market analyst Edward Moya.

Read the full story, here.

 

Reuters via CNBC
Gold steady as dollar dip counters Fed rate hike expectations

Gold steadied on Wednesday, with a weaker dollar offsetting pressure from higher U.S. Treasury yields as investors await the first pandemic-era U.S. Federal Reserve interest rate hike.

Spot gold was flat at $1,917.91 per ounce at 1015 GMT, after touching its lowest since March 1 at $1,906 on Tuesday. U.S. gold futures fell 0.3% to $1,923.40.

“Bullion bears are taking a breather as they await the Fed’s highly-anticipated policy guidance,” Han Tan, chief market analyst at Exinity, said.

“Once gold markets have fully digested the Fed’s policy signals, attention could swiftly return to the ever-evolving Russia-Ukraine war,” Tan said, adding that any escalation of the crisis would lead to further gold price rises.

You can read the full story, here.

 

Fox Business/Breck Dumas
What does a Federal Reserve interest rate hike mean for Main Street?

The Federal Reserve is expected to raise interest rates this week for the first time since late 2018, and economists anticipate further hikes throughout the year as policymakers seek to combat soaring inflation.

While the central bank’s actions are closely monitored by Wall Street, folks on Main Street will be impacted, too.

An increase in interest rates means higher borrowing costs, so consumers and businesses can expect to pay more for car loans, mortgages, and credit card balances. Those additional costs cause shifts in consumer behavior.

You can read the full article, here.

 

 

 

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