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Chicago Fed President Austan Goolsbee stated that the Federal Reserve may need to raise interest rates further to restore price stability, driving the dollar index (DXY00) up by +0.16% and pressuring precious metals.
The hawkish commentary suggests the central bank aims to narrow the gap between supply and demand, a process that could lead to drops in employment, wages, and growth.
Markets are currently pricing in a 53% chance of a 25 basis point Fed rate hike at the upcoming FOMC meeting on October 27-28.
This monetary tightening outlook has weighed on gold, with December COMEX gold (GCZ26) falling -48.30 points, or -1.09%, while December COMEX silver (SIZ26) dropped -0.549 points, or -0.82%.
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