The price of gold futures continued to plummet. Recently, it dropped $30, breaking the level of $1,990 today. While investors are worried that the US Federal Reserve (Fed) will continue to raise interest rates to curb inflation.
At 9:26 p.m. Thai time, the COMEX (Commodity Exchange) gold contract is delivered in June. minus $ 30.50 or 1.50% to $ 1,988.60 / ounce
Rising interest rates will increase the opportunity cost of holding gold. Because gold is an asset without interest in the form of interest.
In addition, the Fed’s interest rate hike will strengthen the dollar. which will reduce the attractiveness of gold By making gold contracts more expensive for holders of other currencies.
Fed officials will be able to comment on monetary policy today for the last time. Before entering the blackout period tomorrow While the Fed will hold a policy meeting on May 2-3, which is in line with Fed rules.
Fed regulations prohibit Fed officials from making public comments. or giving interviews during the Blackout Period on monetary policy It starts the second Saturday before the Fed’s monetary policy meeting (FOMC) and ends the Thursday after the FOMC meeting.
The CME Group’s FedWatch Tool indicates investors are 84.0% weighing the Fed raising interest rates by 0.25% to a range of 5.00-5.25% at its May 2-3 meeting, and 16.0% weighing it. The interest rate is maintained at 4.75-5.00%.
Atlanta Fed President Rafael Bostic said he expects the Fed to raise rates one more time before suspending interest rates to consider the impact on the economy from the Fed’s tightening policy. finance
However, Mr Bostic said The Fed will not cut interest rates this year. because inflation remains high That’s compared with the Fed’s 2 percent target, despite several Fed officials warning at the March meeting that the United States could face a recession this year.
Bostic’s statement defied market expectations. which sees the Fed to cut interest rates by 0.50% before the end of 2023
