• Register

Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Gold is getting cheaper amid a possible Fed rate hike


April, 08 2022
watermark Economic news

The price of gold on Friday morning shows a decline under the pressure of a possible further increase in the base interest rate by the US Federal Reserve.


The current price of the precious metal is $1928 per ounce. May silver futures fell to $24,660.


Investors continue to evaluate the comments of the head of the Federal Reserve Bank of St. Louis, James Bullard, that the Fed is not yet completely controlling the inflation rate, so it is likely to raise the discount rate quite sharply. And as you know, an increase in the base interest rate is positive for the dollar and negative for gold.


At the same time, it is worth noting that the precious metal is still holding above the level of $1,900 per troy ounce as a safe haven asset amid international tensions around Ukraine.


«On the one hand, gold is supported by geopolitical risks around Ukraine, and on the other hand, the increasingly hawkish position of the Fed limits the growth of gold due to the inverse correlation with the dollar,» analysts say.


Top Top