Gold price at the beginning of the trading session in the US continued to increase by 11 USD. The market is getting “hotter” due to the impact of comments by Chairman of the US Federal Reserve (Fed), Mr. Jerome Powell, before the House Committee. Mr. Jerome Powell said that it is likely that the Fed will cut interest rates this year, because inflation has decreased significantly.
According to signals from the CME Fedwatch tool, there is a 68.7% chance that the Fed will lower interest rates at its June meeting with a cut of 25-50 percentage points.
If developments are as predicted by CME Fedwatch, this is the time to reverse US monetary policy. This means the USD goes down and is the driving force for gold to continue to increase in price.
Fed officials recently said that the US Central Bank closely monitors economic data to decide when to cut interest rates.
Gold price forecast
Jesse Felder, founder of financial company Felder Report, said gold will only increase in the short term because the Fed’s interest rate cut policy is likely to take place at the end of the year.
Adrian Ash, director of research at BullionVault, said speculative activity is driving gold’s rally further. This creates a risk that gold may be sold off to take profits, causing the price to drop sharply.
According to senior analyst Krishan Gopaul of the World Gold Council, 2024 could be a boom year for gold after additional demand increased sharply in January from frequent buying countries such as China and Turkey. Turkey, India…
