The price of gold futures closed on Wednesday (September 14), down $8.30, continuing the decline since yesterday. After the United States revealed inflation numbers that rose more than expected. This will be a factor that supports the United States Federal Reserve (Fed) to accelerate interest rates.
The price of gold futures closed on Wednesday (September 14), down $8.30, continuing the decline since yesterday. After the United States revealed inflation numbers that rose more than expected. This will be a factor that supports the United States Federal Reserve (Fed) to accelerate interest rates.
Comex gold contract Delivered in Dec. Down $8.30 to close at $1,709.10/oz.
However, while gold is seen as a hedge against inflation. It is a safe haven when markets face political and economic uncertainty. But the Fed tends to accelerate interest rates. has overshadowed such positive factors A rebound in interest rates will increase the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Investors added that to the forecast The Fed will raise interest rates by 1.00% at this month’s monetary policy meeting. The US consumer price index (CPI) was higher than expected.
The final important economic data is the inflation figure. Before the Fed holds a monetary policy meeting on 20-21 September
The CME Group’s latest FedWatch Tool indicates that investors weigh 36% that the Fed would raise interest rates by 1.00% to 3.25-3.50% at its September 20-21 meeting, and 64% that the Fed would raise interest rates 0.75%
Previously, investors had never weighed in that the Fed would raise interest rates by 1.00% at its September meeting. And just started weighing 18% yesterday after the US revealed higher than expected inflation numbers.
