Gold Price Plunges as Fed's Waller Warns of Possible Rate Hike
Gold (XAU/USD) fell sharply on Monday after Federal Reserve Governor Christopher Waller warned that the Fed should consider raising interest rates if this week's CPI data shows an increase.
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Federal Reserve Governor Christopher Waller stated that if the Consumer Price Index (CPI) rises this week, the Fed should consider an interest rate hike. The remarks triggered a sharp selloff in gold (XAU/USD) on Monday, as traders priced in a more hawkish monetary policy outlook.
Market participants now await the upcoming CPI release for further direction. The precious metal is highly sensitive to interest rate expectations, as higher rates increase the opportunity cost of holding non-yielding assets like gold.
Source: FXStreet Forex News