Gold futures prices continued to fall today. Most recently, it sank $40 and dropped to $1,900 today. being pressured by the appreciation of the dollar and concerns that the US Federal Reserve (Fed) will speed up interest rate hikes to curb inflation.
At 21:17 Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in June. It fell $40, or 2.06%, to $1,894.30 an ounce.
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies
The gold price has been volatile in the past week. It rose near $2,000 on Monday. before falling below the $1,940 level at the end of the week. And resulting in the price of gold falling more than 1% last week.
Investors are worried about the Fed’s rate hike. After Fed Chairman Jerome Powell said he encouraged the Fed to move faster to combat inflation. and signaled there was a chance the Fed would raise interest rates by 0.50% at its May meeting. This will be the first time the Fed has raised interest rates by 0.50% since 2000.
Markets are also worried that the Fed will raise interest rates more strongly after May. could be raised by 0.75% to curb inflation