The rise in rates discourages purchases of the gold metal, since it is valued in US dollars and does not generate interest.
Gold experiences a decline this Monday due to the strength of the dollardriven by the announcement of the Federal Reserve on the prolongation of the rise in interest rates. However, the fluctuations are moderate, as investors inflation data awaited that will be announced this week.
Gold spot goes back one 0.2%standing at US$1,920.90 per ounce, while the futures of gold In the United States they also fell 0.2%, reaching US$1,941.60.
The price of gold was in a consolidation stage, after prices They will not be able to stay above US$1,930 per ounce the previous week, as noted Carlo Alberto De Casa, Kinesis Money analyst. He added that the bullion could face greater pressure towards the crucial psychological level of $1,900 if the Fed continues raising interest rates.
Gold and the Fed effect
The rise in the cups discourages acquisitions of golden metalsince it is valued at American dollars and does not generate interest.
At that moment, the dollar was at maximum levels of more than six months, while the performance of the US Treasury bonds In 10 years it was approaching its level highest in 16 years.
Investors’ attention was now heading towards the personal consumption price index (PCE), the inflation indicator preferred by the Fed, whose release was scheduled for September 29.
As for other precious metals, the silver spot registers an increase of 0.3%, reaching US$23.48 per ounce; platinum experienced a decrease of 0.8%, standing at US$919.17; and the palladium It fell 0.6%, settling at $1,241.98.
Source: Ambito
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