NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing

Gold Mining Industry Takes a Hit as Fed Rate Hike Looms Large

Yashu Gola
Yashu Gola
1 year ago
2 mins read
Trend

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The price of gold bullion steadied this week, but continued to trade lower as a Fed rate hike gains ground. On Wednesday, 15 March 2017, the Fed will announce its decision vis-à-vis the federal funds rate. Analysts are expecting the Fed to pull the trigger with a 25-basis point rate hike to 0.75% – 1.00% in March. Naturally, this does not bode well for gold which struggles when interest rates rise and the USD strengthens. Gold is a dollar-denominated asset and it moves in the opposite direction of a rising dollar. For gold bugs, the uncertainty in France is less of a factor, and has not adversely affected prices of late.

Gold futures for delivery in April closed 0.08% lower, down $1.00 at $1225.50 per ounce. There is concern about upcoming European elections, but it’s Fed policymakers that are driving the gold price more than anything else. As it stands, we can expect the Fed to act within a week. If Yellen pulls the trigger, this will be the second ‘rate hike’ since December 14, and a significant one at that. The odds of the Fed increasing interest rates have now risen to 86.4%, up from 81.9% on Tuesday, 7 March 2017. This is a significant uptick, and it all but assures investors that the gold price is going to move south.

Gold Futures Market Depressed 

Optimism for gold bullion has been overshadowed by the Fed which single-handedly determines how dollar-denominated commodities are going to respond. The reason gold tends to fare poorly with interest rate hikes is clear: gold is a dollar-denominated commodity. It is priced in USD, and with a rate hike the precious metal becomes relatively more expensive to foreign buyers. As a result, the initial movement is decreased demand followed by a decrease in the gold price. If we look at the daily April Comex gold demand chart, the recent movements indicate several successive sessions of losses. It should be pointed out that the Fed can still surprise analysts and traders by not pulling the trigger on interest rates and simply issuing a strong statement that a rate hike is imminent.

Trading Gold to the Downside: Fed Policy Outweighs Geopolitical Risks

For this reason, gold bugs remain confident that prices can continue to rise towards the $1300 level and beyond. Nonetheless, the state of the US economy is such that a rate hike is a real possibility. We can expect the NFP (nonfarm payrolls) data to indicate some 190,000 jobs added in February. If this occurs, it will only provide more momentum to the hawks at the Fed. Geopolitically, there are always elements that can reverse the declines in gold. For example, European elections and the rise of right-leaning parties is particularly concerning. This is true in France and elsewhere.

Strategists from Lionexo binary options have cautioned that there are growing concerns about North Korea’s belligerence with the firing of ballistic missiles. Much the same is true of recent events with the Islamic Republic of Iran.  The US, Japan and South Korea may decide to intervene by announcing a pact, or forming a physical buffer against North Korean aggression. If any negativity emerges on the political spectrum, this will bode well for gold and traders will cash in with call options.

Tweet123Share196ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum

Ethereum Rips Through Thin Zone: A Loud Move After Weeks of Silence

After weeks of whisper-quiet consolidation, Ethereum has finally found its voice, roaring through a historically thin price zone with conviction....

Godspower Owie 3 hours ago

How a Single Burn Sparked a Frenzy: $FUN Skyrockets Towards 500% After 25 Million Tokens Burn

Few events in crypto can ignite a market rally quite like a well-timed burn. For FUNToken, the June 24 announcement...

NewsBTC 3 hours ago
Uniswap COO Exits After $73B Surge — What It Signals for DeFi and Best Presales.

Uniswap’s $73B Growth Fuels Optimism for DeFi and the Best Presales After Leadership Change

Mary-Catherine Lader just stepped down as President and COO of Uniswap Labs after a four-year run that transformed the platform...

Aaron Walker 6 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Bitcoin’s Next Milestone: $250K In Sight After $120K Test, Analyst Says

Christian Encila 18 minutes ago

Deepseek crypto prediction despre proiecte cu potențial

Elvira C. 2 hours ago
MicroStrategy

Beyond MicroStrategy: Top 10 Crypto Treasury Stocks to Monitor

PR Desk 3 hours ago

Premium Sponsors

Press Releases

  • 2 kryptoměny s extrémně vysokým oceněním, které mohou stát za to riziko

    2 kryptoměny s extrémně vysokým oceněním, které...

    54 minutes ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    2 rendkívül magas árfolyamú kriptovaluta, amelyeket...

    2 hours ago
  • 2 криптовалути с небесни оценки...

    4 hours ago
  • 仮想通貨プレセール|ビットコイン向け最速かつ唯一の本格レイヤー2が300万ドル突破

    ...

    5 hours ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    ...

    5 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.