Gold prices are waiting for the Federal Reserve meeting

According to the Fars International Economic Group, the price of gold in today’s trading fell on the eve of the Federal Reserve meeting as investors waited for the speed of the US Federal Reserve to reduce economic measures in the event of an outbreak. coronavirus are.

Gold traded down $ 5, 4 cents, at $ 17,81.63 an ounce.

“Strong dollars and rising real interest rates due to declining inflation expectations based on head-to-head inflation are factors that keep gold prices below $ 1,800,” said UBS analyst Giovanni Stanovo.

“Market players will closely follow the meeting of the Federal Open Market Committee to see how the US Federal Reserve responds to rising inflation, which will lead to possible further price changes.”

The value of the dollar remained almost constant, which limited the demand for gold by owners of other currencies. At the same time, US Treasury bond yields are down Most The one-week level rose yesterday, which was one of the reasons for the decline in gold prices.

The Federal Reserve will begin its two-day policy meeting later today. The Federal Reserve is expected to end bond purchases sooner than previously announced and possibly raise interest rates sooner than next year.

Reducing economic stimulus and raising interest rates increases the profitability of government bonds and increases the cost of holding gold as interest-free assets.

end of Message/

You can edit this post