Gold saw a continued decline on Thursday, influenced by the strong rebound of the dollar and the increase in the yields of treasury bonds American, after the Federal Reserve strengthen its position on the interest rates.
The spot gold price registers a fall of 0.4%reaching the US$1,922.30 per ounce. In the previous session, it had briefly reached its highest point since September 1, but the day ended on the downside. On the other hand, US gold futures also decreased by 1.2%, standing at US$1,942.90.
Although the Federal Reserve kept interest rates stable During their meeting, their updated quarterly projections suggested the possibility of a further hike in rates this year and that they would remain elevated until 2024.
Han Tanchief market analyst at Exinity, said: “Gold traders They took the Fed’s message about prolonging the rate hike very seriouslyforcing the bulls to temper their enthusiasm.”
Dollar Hit Six-Month Highs, While 10-Year Treasuries reached their highest point in 18 yearswhich put pressure on spot gold, since it does not generate interest.
However, Han Tan added: “UntilSo far, spot gold has seen only limited declines post-FOMC as bulls appear to cling to the Fed Chairman’s wordsPowell, that a US rate cut ‘will come’ at some point.”
In relation to market expectations, there is a 45% chance of another rate hike this yearbut there is also a 40% chance that the Fed will ease policy in the first half of 2024, according to CME’s FedWatch tool.
“The metal Precious will probably have to depend on the slowdown of Treasury yields to post significant gains to the upside,” said Tim Waterer, chief market analyst at KCM Trade.
On the radar of investors is the political decision of the Bank of England on whether it will stop a series of interest rate hikes dating back to December 2021.
As for other precious metals, the silver experienced a fall of 0.3%, trading at US$23.16 per ounce, and platinum lost 1.1%, reaching $918.78. For his part, the palladium suffers a loss of 1.7%, marking its worst session since August 30, with a value of US$1,253.05.
Source: Ambito
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