Gold prices decline with anticipation of Jerome Powell’s speech

Gold prices decline with anticipation

Gold prices decline with anticipation of Jerome Powell’s speech and expectations of a rate hike.



the sixth consecutive session

The US dollar







the sixth consecutive session


gold prices fell during trading on Monday to settle at the lowest level in the last three weeks,
negatively affected by the strong performance of the US dollar,
and this came amid increasing expectations about raising interest rates
by the US Federal Reserve again at a greater rate to counter inflation.


Gold prices recorded a decline,
as gold futures contracts for September delivery fell to a record $ 1,745 an ounce,
by about 0.98%, and spot gold prices also decreased by 0.82% to settle at $ 1,732 an ounce,
the lowest level since July 28.
Silver futures contracts for December delivery also fell to $ 18.92 an ounce, by 1.34%.











The US dollar


rose to its highest level in more than a month compared to the rest of the other major currencies,
and this was the reason for the increase in the cost of gold for buyers trading in other currencies.
Yields on short-term US Treasury bonds up to 3-year benchmark 10-year bonds
also rose and reached their highest level in a month,
causing an increase in the opportunity cost of holding zero-yielding gold.
Gold is very sensitive to rising US interest rates,
as this will increase the opportunity cost of holding non-yielding bullion.

Markets still expect to raise interest rates by the Fed by 50 basis points
or more at the next meeting in September in order to try to return inflation to the bank’s target,
and this came amid expectations that inflation may reach its peak and
with increasing fears of recession, which will push gold to increase its Backtracks.



This week, attention turns to the comments of US Federal Reserve Chairman
Jerome Powell in his speech at the annual World Banking Conference next Friday
Also, gold was subjected to pressure in the selling operations in order to
take profits from the high levels of gold during the last three weeks.


artical name Gold prices decline with anticipation


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