The US Federal Reserve’s hints on interest rates are putting pressure on gold prices

The US Federal Reserve’s hints on interest rates are putting pressure on gold prices prices fell in trading today, Thursday, after the Federal Reserve (the US Central Bank) kept interest rates unchanged, indicating that interest rates cannot be reduced before sustainable signs of a decline in inflation to the target of 2%.

The Us Federal Reserve’s Hints On Interest Rates Are Putting Pressure On Gold Prices

Gold fell 0.66% to $2,304.12 per ounce – at the time of writing the report – after rising 1.4% yesterday, achieving the best daily performance in more than two weeks.

US gold futures for June delivery rose 0.09% to $2,313.

The American decision

The US Central Bank’s latest monetary policy decision left the basic elements of its economic assessment and monetary policy directions unchanged, and set a framework for its interest rate discussions linked to the conditions under which borrowing costs can be reduced.

Federal Reserve Chairman Jerome Powell said the next step would depend on the data, ruling out an increase.

City Index chief analyst Matt Simpson said traders were relieved that Powell closed the door to further rises, which helped gold prices climb back above $2,300. Lower interest rates increase the attractiveness of owning the precious metal.

Predict prices

“What traders would like to see now is less strong non-farm payrolls data,” Simpson said. “We are quickly approaching the second half of the year, and as long as central banks continue to pile up gold, I think the high could hold for the rest of the year and exceed $2,500.” .

Platinum gained in spot transactions 0.2% to $952.07 per ounce, at the time of writing the report, after reaching the highest level in two weeks earlier in the session, and palladium gained 0.3% to $951.55, while silver prices fell 0.82% to $26.40 per ounce.

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