Jakarta, CNBC Indonesia – Gold prices again slipped into the red zone. Gold prices are very volatile amid uncertainty about the interest rate policy of the central bank of the United States (USA), The Federal Reverse (The Fed).
In trading on Tuesday (7/5/2024) the price of gold on the spot market closed with a decrease of 0.46% at $2,312.79 per troy ounce.
Gold prices have been very volatile in the last three days. The price of the precious metal weakened on Friday last week but then went up 0.96% on Monday before falling again on Tuesday.
Meanwhile, as of 06.00 WIB Wednesday (8/5/2024), the price of gold on the spot market rose 0.08% to US$2,314.61 per troy ounce.
Gold prices fell in trading on Tuesday as market players remained focused on lowering interest rates from the central bank of the United States (US), The Federal Reserve (The Fed).
Richmond Fed President Thomas Barkin said Monday (6/5/2024) that monetary policy is currently tight enough to bring inflation within the Fed’s annual target of 2%, and will relative strength in the labor market enough room for the bank. wait for this to happen.
New York Fed President John Williams also said that current financial conditions are sufficient to reduce inflation.
This week, several central bank officials will also make speeches, to provide guidance for the Fed’s interest rate policy.
Inflation remains the biggest challenge for the Fed as it considers rate cuts, as price pressures rose more than expected through the first quarter of 2024 and remain well above target the Fed’s annual rate of 2%.
According to CME’s FedWatch Tool, market players in the federal funds futures market believe there is about a two-thirds chance the US central bank will cut interest rates next September.
Lower interest rates can be attractive to gold bullion which provides more attractive returns.
Meanwhile, China’s central bank continued to accumulate gold for 18 consecutive months, with China adding 60,000 troy ounces to its reserves even though gold prices remained at high levels.
CNBC Indonesia Research
(saw/seen)
2024-05-07 23:40:00
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