Fed sees longer road to 2% inflation target
by Harshit Verma
Reuters.com
May 22 (Reuters) – Gold prices dipped over 1% on Wednesday as the gold rally cooled with investors booking profits, as traders pulled back from bets on Federal Reserve’s rate cuts this year.
Spot gold fell 1.8% to $2,377.43 per ounce by 1858 GMT. Prices had scaled a record high of $2,449.89 on Monday.
U.S. gold futures settled 1.4% lower to $2,392.90. The U.S. dollar index (.DXY), opens new tab rose 0.3%, making bullion more expensive for other currency holders.
“You’re seeing some week-long liquidation, some profit taking by the shorter term futures traders; all of which is not unusual in a market that hit a record high,” said Jim Wyckoff, senior analyst at Kitco Metals.