Gold futures rebounded to $4.60, benefiting from safe haven orders.

gold futures price Close Wednesday (September 21) up $4.60 as investors flock to gold as a safe haven. Amid concerns about the crisis in Ukraine After Russian President Vladimir Putin announced that troops will be mobilized to intensify the war against Ukraine.

Comex gold contract Delivered in Dec. It rose $4.60 to close at $1,675.70 an ounce.

President Putin’s announcement today This was the first call to mobilize Russian troops since World War II. If the Western nations continue to use nuclear weapons to blackmail Russia, Russia will then retaliate with all the power it has in the country’s arsenals.

In addition, gold prices have been positive factors of the decline in US government bond yields. This reduces the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.

However, the positive range of gold prices was limited by the appreciation of the dollar. and concerns about the Federal Reserve (Fed) rate rise.

The Monetary Policy Committee The decision of the Federal Reserve (FOMC) raised short-term interest rates by 0.75% to 3.00-3.25 percent at its meeting on Wednesday. as the market expected

The Fed has raised interest rates by 0.75% for the third time in a row, the Fed’s toughest move yet. Since the Fed designated short-term interest rates as a key monetary policy tool in 1990, the policy rate is now 3.00-3.25 percent, the highest level since 2008.

The Fed has also indicated that it will continue to raise interest rates until it reaches 4.6 percent in 2023.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.