Rise in Gold Prices

Rise in Gold Prices

Gold Prices Rise: Global gold prices rose to over $2,400 per ounce during Wednesday trading.
This increase came just hours before the U.S. Federal Reserve’s (Fed) decision on interest rates was announced.

 

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Rise in Gold Prices
Important Decisions at Today’s Fed Meeting

Bank of Japan Raises Interest Rates

 

 

 

 

 

Rise in Gold Prices

Global gold prices rose to over $2,400 per ounce during Wednesday’s trading.
This rise occurred just hours before the U.S. Federal Reserve’s decision on interest rates,
and the daily drop to the $2,400 level had a counteracting effect. 

Additionally, slow global economic growth forecasts and the U.S. dollar’s drop from its three-week high supported gold prices.
Despite this, optimistic investors might hold back from making strong bets,
preferring to wait for more signals regarding the Fed’s path on lowering interest rates.
Therefore, the focus will remain on the outcome of the Federal Open Market Committee (FOMC) meeting,
with the interest rate decision expected to be announced later today.

 

Important Decisions at Today’s Fed Meeting

Federal Reserve officials are preparing to lower borrowing costs in the coming months.
Chairman Jerome Powell may hint at this move
at the end of today’s meeting amid rising risks to the labor market.

Fed Governors are expected to keep interest rates unchanged after two Tuesday and Wednesday meetings.
Rates will remain at their highest level in two decades. However, investors expect the Fed to lower interest rates in September.

Recent data has been encouraging, showing moderate price increases and strong economic growth.
However, the Fed wants more confirmation that inflation will continue to decline towards its 2% target. 

The drop in price pressures and a rise in unemployment have balanced the Fed’s dual
mandate of maximum employment and price stability.
Officials aim to tame inflation but do not want to
cause undue harm to the labor market by keeping interest rates high for too long.

 

 

 

Bank of Japan Raises Interest Rates:

After its July monetary policy meeting, the Bank of Japan’s Monetary Policy Committee
raised the target for short-term interest rates by 15 basis points,
from the 0% – 0.1% range to the 0.15% – 0.25% range.

The Bank of Japan’s decision was contrary to the expectations
of many experts but aligned with the broader market expectations.
The market had priced at a more than 65% chance of a rate hike,
Experts mainly predicted that the Bank of Japan would keep the target interest rate range unchanged at this meeting.

 

Gold Prices Rise