Gold Holds Gains as Traders Weigh Growth View, Powell’s Comments
- Summers says Fed will need to hike to 4%-5% to beat inflation
- Traders brace for spiraling inflation amid surging oil prices
This article is for subscribers only.
Spot gold held gains as traders weighed the outlook for rising interest rates against the metal’s appeal as a store of value.
Gold rose as much as 0.8% earlier as higher oil prices fueled inflation fears and a decline in U.S. equities spurred demand for the metal. It pared gains after Federal Reserve Chair Jerome Powell said the central bank will take the “necessary steps” to get inflation down even if that means increasing interest rates more rapidly than currently anticipated.