Gold slumped overnight as the US dollar held firm and US yields soared. Globally, precious metal prices rose slightly on Wednesday morning ahead of a potentially aggressive rate hike by the US Federal Reserve as it tries to fight inflation amid fears of an impending recession. Meanwhile, the famous analyst Islam Memiş added his expectations in the market. Here are the details…
The focus for gold, FED statements
Islam Memis, as we have previously reported on Cryptokoin.com , is correcting the important levels below. had guessed. Therefore, it is followed by many people. Islam Memiş announced that today the focus is on news from the US Federal Reserve (FED). According to Memiş, the highest level of inflation in the last 41 years in the USA caused an alarm system in the markets. According to Memiş, many people know that inflation will not decrease with the FED’s rate hike. An increase of 75 basis points is thought to destabilize the market.
In the current situation, activity in gold and dollar has started before the FED’s decision. Last week, inflation hit the highest level in 41 years. For this reason, it is thought that the FED may talk about 75 basis points instead of 50 when raising interest rates. Pointing out that there is still uncertainty, İslam Memiş said, “Whoever has the dollar, should take advantage of the low commodity and parity opportunity to spread the risk.”
The decline will not continue
Inflation figures in the USA exceeded 8.6 percent. After that, US President Joe Biden emphasized that inflation did not decrease. Markets expect an increase of 50 basis points. However, Memiş believes that the FED will make a more “dove-toned” statement. Memiş used the following statements
On the other hand, the possibility of 75 basis points in global markets is also discussed. However, I believe that such an interest rate hike will disrupt the markets. There is serious uncertainty right now.
İslam Memiş, finally, explains that the Central Bank deliberately suppresses the gold and silver market. However, he thinks that the declines in the current situation are not permanent.
