Gold futures rose more than $20, near $1,870 today. While investors keep an eye on the situation in Ukraine and the trend of raising interest rates by the US Federal Reserve (Fed).
At 22.25 Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in April. It rebounded $27.0, or 1.47%, to $1,869.10 an ounce.
U.S. officials warned that Russia could attack Ukraine at any time. including during the Winter Olympics The talks between US President Joe Biden and Russian President Vladimir Putin over the weekend. Still no progress in resolving the Ukrainian crisis
Investors added that The Fed will raise interest rates seven times this year after the U.S. said inflation was the highest in 40 years and released strong employment numbers.
The CME Group’s FedWatch Tool indicates that investors are weighing as much as 55 percent that the Fed will raise interest rates seven times this year, with the Fed expected to raise interest rates at the remaining seven meetings this year. Starting from March
Investors also weighed up to 88 percent that the Fed would raise interest rates by 0.50% in March, and weighed 95 percent that the Fed would raise interest rates at least 1.00% by June.
Fed Chairman Jerome Powell said earlier that He believes the Fed can still raise interest rates “much more” without affecting the labor market.
Analysts from various bureaus have raised their forecasts for a rate hike this year. After the United States revealed inflation, the highest in 40 years.
Goldman Sachs expects the Fed to raise its policy rate seven times this year, in 0.25% each, from the previously expected five rate hikes.
The seven rate hikes will push the Fed’s policy rate to 1.75-2.00% later this year from the current 0.00-0.25%.
The Bank of America predicts that The Fed will raise its policy rate seven times this year as well. by an increase of 0.25% each
The Bank of America is the first financial institution to expect the Fed to raise its policy rate seven times this year.
HSBC expects the Fed to raise interest rates by 0.50% in March and four more after that. by 0.25% increments, pushing the Fed’s policy rate to 1.50-1.75% later this year.
Deutsche Bank expects the Fed to raise interest rates by 0.50% in March and five more after that. By 0.25% increments, the Fed raised interest rates to a total of 1.75% this year.