Gold Price Falls on US Interest Rate Hike Rumours

Shares in gold miners dropped today thanks to renewed speculation on a Federal Reserve rate hike this year. Is it a temporary drop or is it the start of a long term decline? 

Karen Kwok 22 August, 2016 | 4:46PM
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Shares of gold mining stocks weakened on Monday after comments from Federal Reserve officials renewed speculation of a US interest rate hike later this year.

The question is whether gold is a valuable inflation-protector or an asset with no underlying value

Speaking in Colorado on Sunday, the US central bank’s vice chairman, Stanley Fischer, said the US was “close” to hitting targets for employment and inflation. Fischer’s speech fuelled debates about one possible interest rate hike in the US this year, despite minutes from the US central bank last week showing officials divided over an interest rate hike.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Anglo American PLC2,683.50 GBP0.00Rating
Antofagasta PLC1,398.00 GBP0.00
BHP Group PLC2,019.00 GBP0.00Rating
Fresnillo PLC914.40 GBP0.00
Glencore PLC357.15 GBP0.00Rating
JPM Global Natural Resources A (acc) EUR16.58 EUR2.15Rating
Rio Tinto PLC4,621.50 GBP0.00Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for