Gold prices had a very active week with developments such as the US Federal Reserve’s (FED) interest rate decision. While investors were wondering how to act, new comments came from Gold and Money Markets Specialist Islam Memiş. Here are the details…
FED’s interest rate decision affected the markets
As we have also reported as Cryptokoin.com , at the May 2022 meeting, the FED, the federal funds rate announced that it would increase its target (the benchmark for most interest rates) by 0.50 percent. The announcement comes after the Fed raised interest rates at its last FOMC meeting on March 16, 2022, marking its first increase since 2018. Throughout the COVID-19 pandemic, the Fed has kept the target interest rate close to zero. It first reduced the rate to almost 0 percent on March 16, 2020.
Then in December 2021, the Federal Open Market Committee (FOMC) stated that inflation was well above 2 percent and it would be appropriate to raise rates at an opportune time. Inflation jumped to 8.5 percent by March 2022, so the increase looked imminent. On May 4, 2022, the Fed stated that the target range would increase from 0 percent to 0.50 percent (50 basis points). After these statements, there was a change in the markets.
Gold and Money Markets Specialist shared his expectations
Meanwhile, İslam Memiş shared his thoughts on general markets. According to İslam Memiş, who talked about the FED’s decision, the Fed may increase interest rates three more times until the end of the year, which may indicate a 150 basis point increase in total. Memiş states that there may be a partial pause in the summer months, and this does not indicate that inflation will decline. He thinks inflation will rise by mid-2023.
While the expert said that gram gold completed the first week of May with an increase, he stated that in July and June, first 1.000 liras, then 1.200 liras, and on an annual basis 1.450 liras can be seen. On the other hand, he estimates that ounce of gold is in the band of $ 1,880-1,980, but it will go out of this range during the year. The expert name repeats his forecast of $2,150 an ounce and states that there is no change in his forecast.
