Gold prices have lost 6.8% since mid-October as investors recalibrated their expectations of U.S. monetary policy in response to hawkish signals from the Fed.
The U.S. central bank surprised many investors by reiterating that a potential shift to higher rates remains on this year’s agend.
Gold is expected to struggle once rates climb as it doesn’t pay interest and costs money to hold.
Gold traders now turn their attention to the U.S. employment report, due out on Friday, for fresh insights into U.S. labor market health. The report is closely followed by investors because it is a key input into the Fed’s monetary policy decisions.
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