Gold futures rose $5.50.

Gold futures closed Thursday (Apr 28) higher in a narrow range of $5.50, pressured by the dollar’s appreciation. and concerns that the US Federal Reserve (Fed) will accelerate interest rate hikes at next week’s meeting

Comex gold contract Delivered in June Up $5.50 to close at $1,891.30 an ounce.

A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies

In addition, gold prices were also affected by forecasts that The Fed will speed up interest rate hikes. After Fed Chairman Jerome Powell said he encouraged the Fed to move faster to combat inflation. and indicated there was a chance the Fed would raise interest rates by 0.50% at its May meeting. This will be the first time the Fed has raised interest rates by 0.50% since 2000.

Markets are also worried that the Fed will raise interest rates more strongly following May. might be raised by 0.75% to curb inflation

The disclosure of US economic numbers today. The U.S. Commerce Department released its first estimate for 1Q12 gross domestic product (GDP) showing that the U.S. economy shrank 1.4%, the first contraction since the recession hit the effects of a recession. from the spread of COVID-19 in early 2020.

Analysts had previously forecast the economy expanding 1.1% in the 1Q12.

The US economy previously grew 6.3 percent in 1Q21 and 6.7% in the second quarter, before slowing to 2.3 percent in the third quarter due to raw material shortages in the manufacturing sector. which affects the supply chain and consumer spending. But the US economy resumed 6.9 percent growth in the fourth quarter.

In 2021, the U.S. economy is expanding 5.7 percent, the highest since 1984, following contracting 3.4 percent in 2020, the worst contraction since 1946, hit by the epidemic. of COVID-19

Deutsche Bank expects that The US economy is highly likely to face a recession in late 2023 and early 2024, hit by the Fed raising interest rates quickly and strongly to curb inflation.