Gold price extends its rise from monthly lows (around $1,851) as the US Federal Reserve (FED) sets an anticipated course for monetary policy. However, according to some, the update in the US Consumer Price Index (CPI) may hinder the gains in inflation expectations and gold. Meanwhile, Investment Specialist Tuna Kaya shared his expectations for the markets. Here are the details…
Markets were affected by the FED’s decision
Commenting on the FED’s interest rate decision, Tuna Kaya draws attention to the fact that the central bank’s interest rate decisions always affect the market negatively. Therefore, he thinks that FED’s interest rate decision is behind the recent price change. As we reported on Kriptokoin.com , on Wednesday, the United States Federal Open Market Committee (FOMC) decided to raise interest rates by 0.5 percent, marking its largest upward adjustment in more than two decades.
This is the second rate hike of 2022 and a total of seven increases are expected for the year. In a press conference after the FOMC meeting, Fed Chairman Jerome Powell further reinforced the need to continue raising interest rates to fight inflation. Tuna Kaya stated that in line with the interest rate decision, the dollar gained value and gold was headed for a decline. He also stated that the demand for gold in China has decreased and therefore there may be a change in prices.
Investment Specialist: An upward movement will be observed for the gold price
Tuna Kaya said that investors who are worried about the price of gram gold falling below 900 lira should not panic, but that investors can be a little more patient. stated. Tuna Kaya stated that upward movements will be observed in the price of gram gold in the near future. Under Tuna Kaya, the year-end gold and silver forecasts show that a rise is expected in precious metals.
Expert’s estimates indicate that gram gold can see 1,400-1,450 liras, given the current economic order. On the other hand, he states that the gram price of silver can be traded at 14 lira levels. In concluding the article, we would like to state that these are only expert opinions and that each investor should invest according to his own research.
