Gold fell to a nine-month low
With the rise of the US dollar, gold prices fell to their lowest levels in the last nine months during the trading session on Wednesday
while the minutes of the US Federal Reserve meeting for June decided to put a tighter monetary policy.
The prices of the US dollar index to measure the strength of the currency against a basket of currencies, witnessed a strong rise after holding steady at 104 points, and is currently trading at 107 points, its highest level in 20 years, and investors’ growing demand for gold as a safe haven amid fear of a growing recession.
In the minutes of the Fed meeting, participants see the 0.75 percentage point increase as necessary, with a further increase of 50 or 75 basis points expected at this month’s meeting.
In government data, the ISM index of the service buyer manager fell to 55.3 points in June, its lowest level in the last two years, while the number of vacancies in the country fell to 11.25 million in May and 11.68 million in April.
Gold prices fell
to $1739.95 an ounce to continue Tuesday’s 2.6 percent drop.
U.S. gold futures also fell at $1738.3 at 1.5%.
Spot silver prices rose to $19.2 an ounce by 0.05%
Summary of Decisions of the US Federal Reserve Meeting for July 2022
The following outcomes and choices were made at the US Federal Reserve Committee meeting in July
and they will be discussed in more detail below:
Further rate hikes expected by 0.75% in July in conjunction with higher inflation
Members believe that the rise in inflation rates exceeds the bank’s main target of up to 2%
Increased expectations for rate hikes amid high inflation
Members agree that expectations for inflation have deteriorated
Interest rate increases are mainly caused by rising inflation
Participants also see the emergence of negative signals and risks to economic growth in addition to the possibility of increasing it.
Some members believe that the possibility of raising interest rates is more – complicated if inflation continues to rise.
The most restrictive monetary policies are currently very possible
Consensus agrees that the US Federal Reserve should move monetary policy towards a more neutral
stance and a restrictive stance towards policy may be appropriate
The Federal Reserve seeks to monitor the economic and financial situation
during meetings to determine appropriate monetary policy
in addition to assessing the risk situation on long-term goals of price stability and sustainable economic growth.
The markets were adversely impacted by the announcement of these measures since gold prices
for trading currently decreased to $1737 per ounce
and the US dollar index maintained its advances at a level close to 107 points.
artıcal name Gold fell to a nine-month low