SPDR Gold Shares (NYSE:GLD) are dipping on Tuesday. Expectations for additional Federal Reserve rate hikes rise and geopolitical tensions ease.
SPDR Gold Shares stock is showing weakness. Why is GLD stock trading lower?
Rate Hike Expectations Weigh On Gold
Bank of America shifted to a sharply more hawkish outlook. The bank told clients Monday that it now expects the Federal Reserve to raise interest rates by a total of 75 basis points before the end of 2026. Economist Aditya Bhave outlined a path that includes three consecutive 25 basis point increases in September, October and December.
That sequence would lift the federal funds rate to a range of 4.25% to 4.5%, which is about 25 basis points higher and three months earlier than current market pricing. Bank of America now holds one of the most aggressive rate forecasts among major Wall Street institutions.
