The US Federal Reserve made an increase of 75 basis points in line with expectations. However, the FED President Jerome Powell said they would not compromise their stances. After that, the price of gold went down. Analysts interpret the market and share their predictions.
“It is clear that we are not in an environment that supports gold”
Spot Gold is traded for $ 1,672 with a decrease of 0.08 %during the article. The US gold futures increased by 0.18 %to $ 1,678. The ingot has lost approximately 9 %during the year. Dailyfx Foreign Currency Strategist Ilya Spivak is making the following assessment:
The stage setting from FOMC shows that there is a little more space for real interest rates to continue to rise. Also, it is clear that there is no environment that supports it.
“Interest increase rate will definitely put pressure on the gold price”
Kriptokoin.comAs you have followed, the FED increased interest rates on Wednesday for the third time in a row for a 75 basis points. President Jerome Powell said that reducing inflation is the “comprehensive focus point .. The FED also predicts that policy interest will rise to a faster and higher level than expected. He also predicts that the economy will slow down and unemployment will increase. Religare Broction Commodity and Currency Survey Squandha Sachdeva makes the following comment:
Interest increase rate will definitely put pressure on the gold price. But ultimately, concerns about growth and stagnation will come to the fore. Thus, it will lead to the renewal of the interest rate at lower levels. We anticipate that prices will fall below $ 1,580. The area between $ 1,620 and $ 1,580 is likely to provide the yellow metal.
“Sahin Fed interpretation will not keep the gold in a long -term fall trend”
In addition, the Federal Reserve signaled more interest rate hikes. According to Hight Ridge futures transactions Metal Trade Director David Meger, the gold market, more importantly, rapidly understood that the expected path of interest rate hikes were well affected by market prices.
Standard Chartered Analyst Suki Cooper shares the following assessment:
The decline in yields supported the rise of gold after the FOMC meeting. It is possible to see a short -term closing activity during a relief rally. However, Şahin comment is preparing to keep gold prices in a long -term decline trend.
“The price of gold can create a short -term bottom at $ 1,655”
The FED’s new forecasts show that the policy interest will rise to 4.4 %at the end of this year and to 4.6 %in 2023. Tai Wong, a senior trader in Heraeus Presious Metals in New York, is the estimates of Tai Wong:
The price movement shows that gold can form a short -term bottom at $ 1,655. However, if there is no clear message from the Fed that interest rate hikes will not be made, it will continue to be a upward challenge.
“Financial markets have already priced the increase of 75 BPS”
SAXO Markets UK Senior Sales Trader William Masters says that Vladimir Putin’s partial mobilization announcement shook the markets before the FED policy decision on Wednesday. For this reason, he records that he is rally on flying to gold and dollar paradises. However, the gains of gold remained relatively modest for the session. A stronger dollar created a weight on commodity prices.
“There is no surprise here, except for those who fear an increase in a full percentage score, Aç says State Street Global Advisors Head Gold Strategist George Milling-Stanley. Milling-Stanley, 75 base points increase, mainly pricing in financial markets records. Therefore, as a result of this meeting does not expect a significant price movement.
The US dollar DXY gained strength immediately after the policy decision. Thus, he applied pressure on the price of gold. XM’s leading investment analyst Raffi Boyadjian says that after the FED policy decision, the decisions of the Central Bank of Japan, the Central Bank of the UK and the Swiss National Bank on Thursday will be monitored.
Pablo Piovano: We have more consolidation ahead of us
According to CME Group’s preliminary data, the open interest in the gold -futures markets reversed a consecutive two -day increase. Thus, approximately 3.1 thousand contracts shrunk on Wednesday. On the other hand, the volume has increased sharply for the second day around 87.5 thousand contracts this time.
According to the analyst, the recovery on Wednesday took place in the midst of the ongoing irregular performance and with a significant increase in the contracted open interest and volume. However, the continuation of the theme due to the current range, with a good support in the $ 1,650 region, says that it is on cards for now.
