© Archyde.com. Gold futures prices vary ahead of the US Federal Reserve meeting
Arabictrader.com – Spot and futures prices for gold were mixed during trading on Tuesday, after its heavy losses yesterday and approaching its lowest level in four weeks early today.
In terms of gold trading, the spot rose 0.25% to $1,823.84 an ounce, after falling to its lowest level since May 19 at $1,810.90 earlier in the session.
On the other hand, US gold futures for August delivery fell 0.4% to $1,824.40.
This came after both gold suffered heavy losses on Monday, with the sharp rise of the US dollar amid investors’ bets on larger interest rate increases by the US Federal Reserve, which led to a decline in the attractiveness of bullion and other precious metals.
And the results of the survey of the Financial Times newspaper published yesterday evening led to an increase in the prices of spot contracts for the gold metal, after it indicated that senior economists expected the US economy to stagnate during the first or second quarter of next year.
The rise in spot gold contracts is driven by investors’ appetite for bullion in the short term as a safe haven, amid anticipation of the results of the US Federal Monetary Policy Committee meeting during the next two days, while gold futures declined, awaiting the decision.
Uncertainty prevails in global markets with recent expectations that the US Federal Reserve will raise interest rates by 75 basis points – the largest since 1994 – after the release of very high inflation data, while previous expectations indicated a hike of only 50 basis points.
The news of a possible recession pushed it back after its big gains yesterday, as it fell by 0.4% to record 104.89 points, which supported gold’s gains in the short term.
The dollar’s decline was driven by a decline in benchmark futures yields, after they reached their highest level in two decades, amid fears that sharp increases in US interest rates will push the world’s largest economy into recession.
On the other hand, in addition to gold, July delivery fell by 0.75% to $21.10, while it rose by 0.46%, to record $938.57, as well as palladium by 0.51%, to record $1,808.60.