Gold risks collapse into bear market as Federal Reserve targets inflation

Bullion's extended retreat -- with prices on course for a sixth consecutive monthly drop in September -- has driven prices close to bear-market territory


Photo: Bloomberg

Sing Yee Ong | Bloomberg
Gold fell to near a two-year low after Federal Reserve Chair Jerome Powell pledged to crush inflation and the dollar surged to a record, with the precious metal on the cusp of sinking into a bear market.
The Fed raised interest rates by 75 basis points, and lifted forecasts on where borrowing costs would be at year-end. Bullion closed up 0.5% on Wednesday on a combination of relief that the US central bank didn’t raise rates even more, and haven flows after Vladimir Putin escalated the war in Ukraine.
“Gold’s biggest struggle in the last few months have been the persistent strength in the US dollar,” said Madhavi Mehta, a senior analyst at Kotak Securities Ltd. “Unless we see a

First Published: Sep 22 2022 | 5:32 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to