Precious metal
According to the Fed decision: Gold price drops significantly
Finally, the gold price from record is hurried to record. After the interest rate of the US Federal Reserve Fed, it is now significantly down.
The gold price fell significantly after the record high after the interest decision of the US Federal Reserve Fed. On Thursday morning, the troy ounce (about 31.1 grams) was traded on the stock exchange in London at $ 3,637 and thus about $ 22 the previous day. The equivalent of a ounce costs 3,084 euros.
On the evening before, the listing had briefly rose to a record high at $ 3,707.57 after the US Federal Reserve Fed had reduced the key interest rate for the first time this year and announced further interest steps. Since gold does not remove market interest rates, the prospect of falling interest rates increases the demand for the precious metal.
Börsians had expected to reduce the key interest rate between 4.0 and 4.25 percent. The interest rate decision fell in the Fed’s monetary political council with a vote against. Only one central banker had spoken in 0.50 percentage points for a stronger reduction. It was the Trump confidant Stephen Miran, who was only confirmed as a temporary solution in the Fed board at the beginning of the week.
“US central banker is more closed than feared”
According to experts at Dekabank, the result of the vote shows that the US Federal Reserve are more closed than last feared. “The hurdle for a quick politicization of the monetary policy council is (still) high”. Previously, US President Donald Trump had repeatedly and vehemently called for a significant interest in the interest rate and personally attacked Fed boss Jerome Powell.
Over the course of the year, geopolitical risks, concerned about the possible consequences of the US government’s aggressive customs policy and speculation on falling interest rates in the USA continued to raise the gold price. During this time, the precious metal has now gained about 40 percent in value.
dpa
Source: Stern
