Gold Futures Rise on Weakening Dollar and Anticipated Fed Interest Rate Hold

The price of gold futures continued to rise. Recently broke the $ 1,980 level, driven by the weakening of the dollar. which will increase the attractiveness of gold By making gold contracts cheaper for holders of other currencies.

At 21.15 Thai time, the gold contract on the COMEX market (Commodity Exchange) was delivered in August. plus $ 22.80 or 1.16% to $ 1,981.20 / ounce

In addition, the price of gold also has a positive factor from the expectation that The US Federal Reserve (Fed) will hold interest rates at its meeting next week. Although the Bank of Canada and Australia announced an interest rate hike yesterday.

The latest CME Group’s FedWatch Tool indicates that investors are 70.1% weighing the Fed to hold interest rates between 5.00-5.25% at its June 13-14 meeting, and 29.9% weighing a Fed hike. Interest rate 0.25% to 5.25-5.50%

The Reserve Bank of Canada raised interest rates by 0.25% to 4.75%, its highest in 22 years, while the Reserve Bank of Australia raised it by 0.25% to 4.10%, its highest in 11 years.

Several Fed officials have signaled earlier in support of the Fed holding off on raising interest rates at this meeting.

Investors are eyeing the May release of the Consumer Price Index (CPI) on June 13, before the Fed announces the results of its monetary policy meeting on June 14. The headline CPI and the core CPI are slowing down. But it is still higher than the Fed’s 2% target.