Outlook for Fed rate hike wipes out positive inflation, agencies bearish on gold price which may fall to $1750 by year end

Gold prices were in a narrow range in early Asian trading on November 19. As the bulls try to regain the 1860 handle, a report from Capitol Macro said that despite worrisome inflation levels, gold prices are unlikely to spike in the next few years as the Federal Reserve begins to tighten its monetary policy stance. Meanwhile, two Fed officials spoke separately on Thursday, acknowledging that inflation is having a broader impact and that the Fed may raise interest rates as early as mid-2022.

Gold prices oscillated in a narrow range in early Asian trading on Friday (19 November). As the bulls try to regain the 1860 handle, a report from Capitol Macro (Capital Economics) said that despite worrisome levels of inflation, gold prices are unlikely to spike in the next few years as the Fed begins to tighten its monetary policy stance. Meanwhile, two Federal Reserve officials spoke separately on Thursday, acknowledging that inflation has a broader impact and that the Fed may raise interest rates as early as mid-2022.