Media ININ Economy We Trust
Gold prices hovered, on Wednesday, near the highest level in eight months, which it recorded in the previous session, after economic data increased expectations that the Federal Reserve (the US central bank) is close to ending interest rate hikes.
Gold in spot transactions fell 0.2% to $1973.69 an ounce, under pressure from the dollar’s recovery from its lowest level in 15 months. And US gold futures fell 0.2% to $ 1977.30 an ounce.
Gold recorded its highest level since May 24 at 1984.19 dollars, on Tuesday, to close by an increase of about 1.2%.
Carlo Alberto de Casa, an external analyst at Kinesis Money, said: “Expectations for the US central bank meeting that will be held next week have not changed, but the latest jobs and inflation data have begun to raise expectations that interest rates will start to be cut in early 2024.”
“Moreover, the markets are almost certain that the next interest rate hike will be the last for a while,” he added.
raise interest
According to 106 economists polled by Reuters, the expected rate hike on July 26, to the range of 5.25-5.50%, may be the last time the US central bank raises interest rates in the current monetary tightening cycle.
And higher interest rates mean that bond prices will decline, and their returns will increase, which makes such investments more attractive than gold, which does not yield a return.
As for other metals, silver fell in spot transactions 0.3 percent to $ 25 an ounce, and platinum fell 0.5 percent to $ 977.59 an ounce. Palladium lost 2.5%, recording $1,286.21 an ounce, after rising to its highest level since June 26, at $1,325, on Tuesday. (Reuters
