Gold Prices Increase After Three Consecutive Decline Sessions: Federal Reserve Meeting Ahead

Books – Islam Saeed

Thursday, June 15, 2023 12:00 AM

witness gold prices A slight increase during Wednesday’s trading after suffering three consecutive sessions of decline. Yesterday’s US inflation data showed a decline in inflation, but it is close to expectations in a way that would have a negative impact on the gold markets. However, today the markets are waiting for the most important event this week, which is the Federal Reserve meeting.

Spot gold prices rose today, Wednesday, by 0.3%, to trade at the time of writing the report at the level of $1951 an ounce. This comes after gold fell since the beginning of the week by 0.6%, to lose more than $10.

Despite these moves, gold trading remains within a defined range for three weeks, in light of the lack of clarity in the interest future by the Federal Bank, and consumer price data was issued for the month of May, which is the main inflation indicator, and showed a decline in inflation to 4% at the annual level from 4.9 The core inflation index, which excludes price fluctuation factors, fell to 5.3% from 5.5%.

Inflation remains much higher than the bank’s target at 2%, which keeps uncertainty in the markets at high levels. Inflation data helped increase the demand for risk in the markets after increasing expectations of the Fed’s interest rate hike, so that US stock indices witnessed a rise along with most of the high-risk financial instruments.