gold futures price Close Wednesday (Sept. 14), down $8.30, continuing the decline from yesterday. After the US revealed inflation numbers that rose more than expected. This will be a factor supporting the US Federal Reserve (Fed) to accelerate interest rates.
gold futures price Close Wednesday (Sept. 14), down $8.30, continuing the decline from yesterday. After the US revealed inflation numbers that rose more than expected. This will be a factor supporting the US Federal Reserve (Fed) to accelerate interest rates.
Comex gold contract Delivered in Dec. Minus $8.30 to close at $1,709.10/ounce.
However, while gold is seen as a hedge once morest inflation. It is a safe haven when the market faces political and economic uncertainty. But the Fed tends to accelerate interest rates. has overshadowed such positive factors A rebound in interest rates will increase the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
Investors added to the forecast that The Fed will raise interest rates 1.00% at this month’s monetary policy meeting. The US consumer price index (CPI) was higher than expected.
The inflation figure is the last important economic data. Before the Fed holds a monetary policy meeting on Sept. 20-21
The latest CME Group’s FedWatch Tool indicates that investors weighed 36% that the Fed would raise interest rates 1.00% to 3.25-3.50% at its Sept. 20-21 meeting, and weighted 64% that the Fed would. Raised interest rates by 0.75%
Previously, investors had never weighted that the Fed would raise interest rates 1.00% at its September meeting. And just started to weight 18% yesterday following the US revealed higher-than-expected inflation numbers.
