© Archyde.com. Gold continues to rise with the decline in the dollar and the Federal Reserve hinting to cut interest rates
It rose, during trading today, Thursday, in the futures contracts for the US markets, supported by a decline and lower expectations of raising interest rates.
According to the US Comex Stock Exchange data, an ounce in futures contracts rose to $ 1755.5, an increase of $ 9.9, equivalent to 0.57%, by 9:03 Cairo time.
The dollar’s decline means that gold has become less expensive for investors in other currencies, and the slower rate of interest rate hikes reduces the opportunity cost of the non-return metal.
75% of market traders believe that the US Federal Reserve will raise interest rates by 50 basis points at the next meeting, compared to their previous expectations, with an increase of 75 basis points.
The expectations are consistent with the views of a number of US Federal Reserve members, according to the minutes of the Fed meeting last November, as they indicated that with monetary policy approaching restrictive levels to reach the committee’s goals in terms of curbing inflation and full employment, it may be appropriate to slow down the pace of increasing interest on reserve funds. In addition, the majority of participants said that the slower rate of interest rate hike will be appropriate soon, explaining that the calm pace in the current circumstances will give a better opportunity for the US Federal Reserve to judge the progress towards its goals.