“Gold Prices Volatile Due to US Interest Rate Expectations – Analysis by Islam Saeed”

Books – Islam Saeed

Thursday, 01 June 2023 12:00 AM

The main crisis you face gold It is the expectations for US interest rates, as market pricing has now changed in favor of raising interest by 25 basis points at the next bank meeting in June, with a probability of 65%, according to technical analysis of Gold Billion.

While expectations for fixing monetary policy remained unchanged, it fell to a probability of 35%. This comes with continued statements supporting interest rate hikes and continued monetary tightening by members of the Federal Reserve Bank.

Federal Reserve member Loretta Mester made very hawkish statements, indicating that she sees the need to continue raising interest rates at the next June meeting, and that there is no convincing reason preventing the Federal Reserve from continuing to raise interest rates at its meeting.

These statements restored support to the levels of the US dollar during today’s session, and on the other hand caused a weakness in the recovery in gold prices, which it has been trying to achieve since the beginning of the week, and succeeded in it yesterday, by breaching the $1950 level an ounce.

On the other hand, this week, the markets are awaiting the issuance of multiple data on the US labor sector, starting from today until next Friday, the date for the issuance of the most awaited government jobs report in the markets, as it is the most important data on which the Fed relies in assessing the conditions of the US economy and anticipating inflation in the household sector.