The price of gold rose on the second day after a US Central Bank official did not receive the possibility of interest rate hike seriously. The price of ounce of gold is traded for $ 1,778 with a rise of 0.5 percent.
FED’s monetary policy and timeline to reduce bond purchase affects the market
Governor Christopher Waller said on Tuesday that the FED should start narrowing the bond purchase program next month, but the timeline for the increases in interest rates is probably “still closed again”. Speeches and discussions of the authorities, including Randal Quarles, Mary Daly and President Jerome Powell, will be carefully monitored before the meeting of the Central Bank next month.
The Golden Cullet has recently fluctuated as he tried to measure how long the incentives of the trader pandemia period will be restored by the central banks. Reddled by high energy prices and battered supply chains, ongoing inflation fired concerns that interest rate hikes could come earlier than expected. It is noted that this is a painful expectation for gold. Governor Waller said that if inflation remains over 2 percent by 2022, it would be in favor of an earlier rise.
Economist: The price of gold can see downward pressure next year
The US traders are now acting on a complete interest rate hike at the FED’s September policy meeting next year. In other words, the market is thought to be priced accordingly. However, most of the central banks in the world, except the European Central Bank, are expected to move faster.
Oversea-Chinese Banking Corp economist Howie Lee said, “Gold is trading on the value we see as a fair value right now and I believe that market pricing is caused by inflation fears,” he said. The Economist also made a annoying comment for gold and said, “Despite the monetary normalization, I believe that gold will face the lower pressure next year,” he said.
Kriptokoin.comAs we have reported as the spot gold, starting from $ 1,777 to $ 1,775, although it seems to be quite close to $ 1,780 during writing. Gold could not go above $ 1,800 since the beginning of October. He experienced the closest level to $ 1,800 when he saw $ 1,795 on October 14th.
