Gold futures finished sharply lower on Thursday, pressured by the hawkish tone in Fed monetary policy decision delivered on June 12, despite softer than expected US inflation data of May. The US PPI and CPI cooled down significantly in May, indicating that inflationary pressures continued to subside. Albeit, FMOC’s latest dot-plot projections pointed that only one 25 basis point rate cut this year is anticipated.
Gold futures for August delivery tumbled by $36.80 or 1.5% to settle at $2,318.00 per ounce on the Comex division of the New York Mercantile. Spot gold up by $1.80 or 0.08% to $2,319.80 an ounce.