Investing.com – Just two days after beating all assets against the dollar, gold appears to be trying to regain its luster, and that day it worked.
It rose more than 1% on Friday, as a slight decline in the dollar helped ease some of the pressures stemming from the US Federal Reserve’s monetary tightening policy.
On the other hand, gold prices rose today due to the ongoing tensions on the Korean peninsula, as South Korea has now launched 80 stealth fighters, after spotting 180 North Korean warplanes hovering in the air.
gold now
It increased in spot trading by 1.2% to $ 1649.19 an ounce.
US gold futures rose 1.25% to $ 1,651.90 per ounce.
gold yesterday
The US dollar fell to levels close to $ 1622 an ounce yesterday, down 0.8%.
On the other hand, futures on the yellow metal also fell during yesterday’s trading by 1.54%, falling to levels close to $ 1625 an ounce.
dollar now
The dollar fell again, dropping 0.3%, which increased gold’s attractiveness to holders of other currencies.
signs of stability
“Gold prices … are showing signs of stabilizing. However, we are not out of the woods yet,” said ACC Securities chief economist Clifford Bennett.
The Federal Reserve raised the interest rate by 75 basis points for the fourth consecutive meeting, while continuing its efforts to control inflation in the United States.
After the monetary policy meeting, the Federal Reserve decided to raise the interest rate in a range of 3.75% and 4%, compared to the previous range of 3% and 3.25%, and compared to a level close to the zero last March.
“The FOMC expects a continued rise in interest rates to be appropriate in order to reach a sufficiently restrictive policy stance to bring inflation back towards the 2% target,” clarified the monetary policy statement.
Powell’s statements support the dollar … and crash other assets
Federal Reserve Chairman Jerome Powell has warned against any expectation that the bank will soon stop raising interest rates.
“It’s too early to think about a pause” on efforts to raise the Fed’s target rate, Powell said.
But the head of the US Federal Reserve indicated that the “central” could reduce the magnitude of the interest rate hikes during the policy meeting later this year.
As for the move to a lower interest rate hike of 75 basis points, he said, “that time will come and that time may come to the December meeting soon.”
However, Powell added that “no decision has yet been made” on what action to take at next month’s Federal Open Market Committee meeting.
The war ignites … Gold is active in crises
South Korea recently announced the deployment of up to 80 fighter jets, including “stealth” fighters, after 180 North Korean warplanes were spotted flying recently.
According to the Yonhap agency, South Korea’s joint chiefs of staff said North Korean planes were observed flying between 11:00 and 15:00 near its inland regions, as well as off the western and eastern coasts.
This came just hours after South Korea also announced today, Friday, that North Korea fired some 80 artillery shells at a maritime border area overnight, while Seoul and Washington defense ministers they are committed to showing determination in the face of Pyongyang missile tests.
