WASHINGTON (dpa-AFX) - Gold prices fell on Tuesday as the dollar climbed higher after comments from Federal Reserve Governor Christopher Waller raised concerns the Fed may not cut interest rates as aggressively as initially expected.
Waller said interest rate cuts are likely this year, but added that the central bank can take its time relaxing monetary policy. He said the process should be 'carefully caliberated and not rushed.'
Comments from several top bank officials in Europe also seemed to indicate rate cuts are unlikely anytime soon.
The dollar index surged to 103.43, gaining more than 1%.
Gold futures for February ended down $21.40 at $2,030.20 an ounce.
Silver futures for March ended lower by $0.236 at $23.093 an ounce, while Copper futures for March settled at $3.7665 per pound, gaining $0.0260.
European Central Bank's Joachim Nagel said on Monday that inflation remains high and it's too early to discuss cutting interest rates.
Additionally, ECB Governing Council member Robert Holzmann warned that it's possible there will be no rate cuts this year.
French central bank Governor Francois Villeroy de Galhau said in Davos that it's too early to declare victory over inflation, but the ECB's next move is likely to be an interest rate cut sometime this year.
In economic news today, a report from the Federal Reserve Bank of New York said the NY Empire State Manufacturing Index plunged to -43.7 in January, the lowest reading since May 2020.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
