5.1% decline in global gold prices since recording the $2,080 figure

2023-05-23 19:00:00


Books – Islam Saeed

Tuesday, May 23, 2023 10:00 PM

Since recording gold The historical high of $2080 an ounce at the beginning of this month, prices began to decline by regarding $107 to record an ounce of $1973, a decline of 5.1%, in light of the growing expectations that the current inflation in the United States requires more rate hikes, which is negative for gold, which does not provide Its holders have a return comparable to US government bonds, according to the GoldBillion gold analysis and trading platform

Despite the tension related to the US debt ceiling talks, which was supposed to support gold prices as a safe haven, gold continued to decline significantly during Tuesday’s session, affected by the statements of the US Federal Reserve members.

Neil Kashkari, head of the Federal Reserve in Minneapolis, stated that the bank must continue to fight inflation and go with interest rates above 6% in order to return inflation to the bank’s target at 2%, and the head of the Federal Reserve in St. Louis James Bullard indicated that the labor market is still strong and indicated the need for a rise in the rate Interest once more at 50 basis points.

Gold traded lower since the beginning of the week, ignoring the ongoing debt ceiling negotiations. On the other hand, the precious metal continued to focus on the statements made by Federal Reserve officials, which contradict the content of the Bank’s Chairman Powell’s speech last week.






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