Gold futures inched higher Tuesday despite remarks indicating the Federal Reserve is prepared to raise interest rates next month.
The Fed is paying attention to risks to financial stability brought on by the recent correction in the stock market, but “We are in the process of gradually normalizing both interest rate policy and our balance sheet,” Fed Chair Jay Powell said in the text of his ceremonial swearing-in speech in Washington.
Cleveland Fed President Loretta Mester made similar remarks earlier in the day.
“If economic conditions evolve as expected, we’ll need to make some further increases in interest rates this year and next year, at a pace similar to last year’s” when the Fed raised rates three times, she said in a speech in Dayton, Ohio.
April gold settled at $1,330.40/oz on Comex, up $4, or 0.3%, trimming last week’s losses.