Federal Reserve officials' hawkish remarks reinforce tightening expectations, gold prices retreat

September 23 — Gold prices drifted lower in range-bound trading as a stronger dollar and hawkish remarks from Federal Reserve officials further reinforced market expectations of tighter monetary policy. The dollar rose to a two-month high, making dollar-denominated gold more expensive for investors holding other currencies.

Ole Hansen, head of commodity strategy at Saxo Bank, said: "Gold continues to trade within the established narrow range of $4,300 to $4,400, with Fed officials' remarks and their impact on U.S. interest rates, bond yields and the dollar, along with oil price movements, collectively providing the main direction for short-term traders."

Richmond Fed President Barkin said on Tuesday that rate hikes and the threat of further increases ahead could dampen businesses' inflation expectations and cool price increases without actually dragging down economic activity. (Jinshi)