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Home Gold News Fed close to hitting peak rates, 25 bps hike due next week

Fed close to hitting peak rates, 25 bps hike due next week

by anna

Softer-than-expected retail sales data saw traders pricing in a greater possibility that the Fed will announce a pause in its rate hike cycle next week.

While the central bank is widely expected to raise rates by 25 basis points, it is also seen running out of headroom for future hikes, amid signs of easing U.S. inflation and economic growth.

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Any potential pause in the Fed’s rate hike cycle bodes well for non-yielding assets such as gold, which were battered by a steep increase in interest rates through the past year.

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But gains in gold are also expected to remain somewhat limited, with U.S. interest rates set to remain higher for longer.

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Other precious metals retreated on Wednesday, following strong gains in the prior session. Platinum fell 0.2%, while silver declined 0.1%.

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