Peru’s small miners block highways, camp outside Congress demanding registry extension
Analyst says that there are strong competing interests between Congress and small-scale miners that could escalate.
Gold slipped as investors brace for a Federal Reserve interest-rates decision that risks putting more pressure on the precious metal. Uncertainty over the Fed’s move is leaving gold traders unsure themselves as to where bullion will go.
The metal slid as much as 0.9% Monday, reversing earlier gains, to extend September’s slump in the face of the dollar’s gains. The decline comes after Thursday saw gold sink to its lowest price since 2020. Market expectations are for the Fed to raise interest rates by 75 basis points, though last week’s hot inflation data prompted some traders to bet on an even larger hike.
“If they aren’t as hawkish, you’re gonna see gold prices rebound back from its flow,” Phil Streible, chief market strategist at Blue Line Futures, said in an interview. “On any kind of softer tone in Jerome Powell’s press conference, you could see gold futures rise on that.”
Bullion has slumped this year as the Fed’s aggressive monetary policy undermines non-interest bearing assets while boosting the dollar. Meanwhile, the European Central Bank is also expected to continue lifting rates in October and beyond, said Bundesbank President Joachim Nagel. London’s gold market is closed Monday due to the state funeral of Queen Elizabeth II, which will likely reduce liquidity.
Investors have slashed bullish bets, with hedge funds trading the Comex flipping to a net-short position last week, according to data from the Commodity Futures Trading Commission.
Spot gold fell 0.2% to $1,672.87 an ounce at 11:54 a.m. in New York. The Bloomberg Dollar Spot Index rose 0.1%. Spot silver fell 1.1% while platinum and palladium rose.
(By Diego Lasarte, with assistance from Swansy Afonso, James Fernyhough and Eddie Spence)
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