Gold pares losses as Williams sees no 2027 Fed tightening
Bullion recovered from an earlier decline after the New York Fed president said he does not expect further rate increases next year.
Key takeaways
- Williams said one more rate hike is appropriate for 2026 but expects no further tightening in 2027.
- TD Securities said Williams’ outlook should support gold by reducing the risk of higher carrying costs.
Gold pared earlier losses after New York Fed President John Williams said he sees one more rate hike as appropriate in 2026, but expects no further tightening in 2027. Spot gold was down 0.2% at $4,162.71 an ounce in New York on Tuesday.
TD Securities’ Bart Melek said Williams’ comments should support gold by reducing the risk of higher carrying costs later in 2027. Lower Treasury yields after the remarks also helped bullion, which does not pay interest.
December gold futures traded at $4,183.10, up 0.14% since the previous close, as of 02:33 UTC Wednesday. Traders were looking to Wednesday’s US consumer price index report for clues on the Fed’s next move.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
