Gold prices fell during trading today, Wednesday, as caution prevails among investors ahead of the interest rate decision of the US Federal Reserve, as the US central bank is expected to maintain interest rates at their current levels, but the Federal Reserve may open the door to further increases later in the year. this year.
Gold and dollar now
Gold futures fell 0.15% to $1,951 an ounce.
While spot gold contracts fell by 0.1% to $1,930 per ounce.
On the other hand, the dollar index stabilizes at 104.837 points.
Gold at settlement yesterday
Gold prices stabilized at the settlement of trading yesterday, Tuesday, near the highest level in two weeks, with the beginning of the Federal Reserve meeting to discuss the monetary policy decision, which is scheduled to be issued today.
The OECD recommended that the Federal Reserve keep interest rates at the current level of between 5.25% and 5.5% until the second half of 2024, with further tightening of monetary policy by the European Central Bank and the Bank of England.
While Goldman Sachs (NYSE:GS) sees the Federal Reserve finished raising rates this year, even if the chart it will release after the end of the monetary policy meeting tomorrow shows the possibility of raising rates again.
Upon settlement, gold futures for December delivery settled at $1,953.7 per ounce, the highest settlement since the beginning of September.
The upcoming Fed decision
The Fed's interest rate-setting policy committee will issue a new monetary policy statement and interest rate decision at 21:00 Saudi time, and Fed Chairman Jerome Powell is scheduled to hold a press conference at 21:30 Saudi time.
“So far, real Treasury yields have remained elevated in the run-up to today's Fed meeting, which reflects the Fed's hawkish stop scenario and has kept gold prices somewhat cautious,” said Yap Jun Rong, an analyst at IG.
He added: “The focus will be on whether the new economic forecasts that the Federal Reserve will issue will pave the way for additional tightening of monetary policy or not.”
On Tuesday, US Treasury Secretary Janet Yellen said on Monday: “She does not see any indications that the US economy is going through a recession,” but she warned that the failure of Congress to pass legislation to keep the government running portends a slowdown in the economy.
“I don’t see any signs that the economy is at risk of contraction,” Yellen told CNBC, noting that “the American labor market also remains strong and inflation is declining.”
Earlier, gold prices derived support from fears of a government closure in the United States, in light of the decline in the dollar index with expectations of stabilizing interest rates by the Federal Reserve.
The rise in oil prices caused inflationary pressures and raised expectations that the US central bank would keep interest rates higher for a longer period.
Meanwhile, spot gold may retreat to a narrow range between $1,917 and $1,921 per ounce, with it failing to break the $1,933 to $1,935 resistance zone, according to Reuters technical analyst Wang Tao.
other metals
Spot silver fell 0.7% to $23.08 an ounce, platinum fell 0.7% to $932.29, and palladium was flat at $1,259.39.
