Gold Losing Glitter As Rate Hike Looms
San Francisco (May 23) Gold futures inched lower Monday, extending a losing streak amid signs that Federal Reserve will soon raise interest rates.
A June rate hike once seemed a long shot, but today's remarks from a pair of Fed officials cemented expectations that tightening is imminent.
The Fed is moving closer to "slow normalization" of interest rates, St. Louis Fed President James Bullard said in Beijing Monday .
"By nearly any metric, US labor markets are at or beyond full employment," Bullard said. "This may put upward pressure on inflation going forward."
San Francisco Fed President John Williams said there could be two or three rate hikes this year.
June gold settles at USD1,251.50 /oz, down USD1.40 , or 0.1%. It was the fourth straight daily drop in prices.