31 dollar drop in gold price per ounce in one day

According to the report of the International Economic Group of Fars News Agency, quoted by Reuters, with the increase in the value of the dollar, the price of gold in today’s transactions of the world markets fell sharply.

This is while investors expect the Federal Reserve to raise interest rates just one more time in May before pausing.

Each ounce of gold was sold at $31 and 67 cents down to $1,973.78.

The dollar index rose 0.2 percent, making gold more expensive for holders of other currencies.

“The interest rate is now expected to rise by 0.25 percent, and most of the focus is on whether a rate freeze will be announced after that,” said market analyst Yip John Rong.

“Given the recent increase in prices and extreme bullish technical conditions, the possibility of a reduction (in prices) remains on the table after the Federal Reserve confirms its interest rate outlook.”

The market has 86.6% probability that the US bank interest rate will increase by 0.25% in May. An increase in interest rates reduces the attractiveness of gold.

St. Louis Fed President James Bullard said the Fed should continue to raise interest rates on the back of recent data showing inflation remains high.

But before taking a step back to see how our policy plays out in the economy, one more rate hike should be enough, the Atlanta Fed president believes.

Investors are trying to figure out whether May’s rate hike will be the last, focusing on comments from Federal Reserve officials this week.

Official statistics showed today that UK inflation also fell less than expected to 10.1% in March, and 95% of the market expects the Bank of England to raise interest rates next month.

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