Gold prices fell after the chairman of the Federal Reserve (the US Central Bank) said Wednesday that it was too early to discuss stopping interest rate hikes after the precious metal jumped more than 1 year ago. 1% when the bank indicated the possibility of reducing the future interest rate increases.
And gold fell in spot transactions 0.5% to $ 1640.05 an ounce by 1945 GMT. And gold futures contracts in the US rose 0.02% as they stabilized at $ 1,650 prior to the Federal Reserve’s decision.
Prices rose more than 1% after the bank raised rates by 75 basis points, as widely expected, but indicated that future increases in borrowing costs may be lower to account for the impact of the “tightening. cumulative monetary policy “for its part Until now.
Later, Jerome Powell warned against any speculation that the central bank would soon stop raising rates.
Gold is heavily influenced by interest rates, as increasing them increases the opportunity cost of purchasing the precious metal, which does not generate a fixed return.
The dollar index and 10-year Treasury bill habits rebounded after Powell’s comments.
And the average price of gold will hit $ 1712.50 an ounce next year, according to a Reuters poll, up from current levels.
Spot silver was down 1.6% to $ 19.3 an ounce after rising to a three-week high on Tuesday.
Platinum was down 0.7% to $ 936.28 and Palladium was down 1.3% to $ 1,856.50.
