The price of gold futures has narrowed. Although most investors are out of the market. Prior to the release of the minutes of the Federal Open Market Committee (FOMC) meeting for November today.
At 8:07 pm Thai time, the COMEX (Commodity Exchange) gold contract will be introduced in December. minus $2.20 or 0.13% to $1,737.70 / oz
Investors are keeping an eye on the minutes of the November 1-2 FOMC meeting, which will be released later today, for an indication of the Fed’s interest rate direction.
In addition, the market will keep an eye on the Fed official’s statement on the direction of US interest rates.
Cleveland Fed President Loretta Mester said the Fed may raise interest rates more slowly since December. While the Fed adjusts monetary policy to prevent inflation. while maintaining strong economic growth.
“I believe the Fed may delay raising interest rates at its next meeting. after raising interest rates to 0.75% at the previous meeting which I think is appropriate But I think we should let economic conditions be an indicator of that To what extent should we raise rates?” said Ms Mester.
The Fed raised interest rates by 0.75% to a range of 3.75-4.00% at its November meeting. While investors expect the Fed to raise interest rates by 0.50% at its December 13-14 meeting.
Rising interest rates will increase the opportunity cost of holding gold. Because gold is an interest-free asset in the form of interest.