Gold prices continue to suffer from Fed’s rhetoric

Gold prices have continued to decline since the beginning of trading on the first day of the new week’s trading, following in the footsteps of commodities that took a downward trend since the opening bell.

Spot gold contracts fell to $2,318 per ounce, compared to the previous daily close, which recorded $2,301 per ounce. Gold contracts rose to the highest levels on the current trading day at $2,332, compared to the lowest levels, which recorded $2,315.

Investors are currently preoccupied with the Fed’s speech that appeared in the interest rate statement and the statements by Fed Chair Jerome Powell, last Wednesday, after taking the decision to fix interest rates for the sixth meeting in a row, and placing this speech side by side with the economic data that It has appeared repeatedly in recent times.

This period witnesses a stage for evaluating the future path of the federal interest rate at a time when markets are eager to determine the monetary policy position of the major central banks.

The Federal Reserve expressed reluctance to indicate the time to start reducing interest rates in the interest rate statement issued by the central bank last Wednesday, in addition to the absence of Powell’s statements of indications of this kind, which apparently came due to the continued rise in inflation.

As the cost of borrowing continues to rise and yields on the US dollar rise, it may be difficult to stick to the non-yielding precious metal.