Gold retreats on stronger dollar; traders brace for Fed - Reuters
Gold retreats on stronger dollar; traders brace for Fed - Reuters
Source: Reuters
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DW NOTE
The Fed hiked rates once in September and gold is down 23% since January. The dollar is stronger because the rest of the world's currencies are weaker — Hormuz is closed, oil is still near $100, and Europe is paying for energy in hard currency while printing to cover fiscal gaps. Gold isn't falling because monetary policy tightened. It's falling because traders have decided the dollar is the least bad option when straits close and ceasefires don't hold.