Friday, December 13, 2024
Home News "Gold Prices Flat Ahead of Fed Rate Decision"

“Gold Prices Flat Ahead of Fed Rate Decision”

Although some investors remained on edge ahead of the US Federal Reserve’s interest rate decision and policy outlook on Wednesday, gold prices traded in a constrained range.

After losing 2% on Tuesday, spot gold remained unchanged at $1,940.11 an ounce as of 0540 GMT. To $1,942.10, US gold futures increased by 0.1%.

According to OCBC FX strategist… has reduced, “market events remain fluid, but as things stand, it looks that the banking sector’s wounds are showing tentative signs of recovery following emergency backstops and assurances from authorities.” Wong Christopher.

Following the failure of a US-based Silicon Valley bank and the Credit Suisse crisis, demand for safe haven assets drove gold prices up 10%, or about $180, to a one-year high. But, after Credit Suisse was saved, prices started to rise, even while the financial system’s level of uncertainty persisted.

The US banking system is stabilizing, but additional measures may be required “if there is a deposit run to smaller institutions that poses a danger of contagion,” according to US Treasury Secretary Janet Yellen, who spoke to bankers on Tuesday.

Investor focus is currently on the Fed’s decision, which is set for 1800 GMT, and the press conference that follows, featuring Fed Chair Jerome Powell. The CME FedWatch tool indicates that a 25 basis point rate increase by the US Federal Reserve is generally anticipated.

“If we receive higher figures, it signals a steadily-aggressive Fed that is determined to fight inflation,” OCBC’s Wong stated. Gold prices could be harmed by a potential hawkish revaluation.

Although gold is thought of as a hedge against inflation, when interest rates are raised to combat inflation, the opportunity cost of storing non-yielding gold rises.

According to Reuters technical expert Wang Tao, “gold may bounce higher in the region of $1,951 to $1,958 an ounce as it stabilizes at the $1,934 support.”

Spot silver fell by 0.1 percent to $22.36 per ounce, platinum increased by 0.5 percent to $973.30, and palladium increased by 1.6% to $1,410.76.

Also Read: “HSBC: Zomato shares may surge 64%; Buy now?”

RELATED ARTICLES

Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

SIGNUP & GET $10000 BONUS

Most Popular

Olymp Trade Trading Guide: From Beginners to Advanced Traders

Online trading platforms like Olymp Trade have become popular among individuals looking to earn additional income. Whether you're a beginner stepping into the world...

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Recent Comments