“Gold Prices Fall for Second Consecutive Day Ahead of Federal Reserve Meeting: April 24, 2023”

agencies

Monday, April 24, 2023 09:00 PM

I backed off gold prices, Today, Monday, for the second session in a row, as the focus of investors turned to the meetings of the Federal Reserve (the US Central Bank), to clarify its strategies to raise interest rates, which may highlight any progress in taming inflation, according to “Reuters”.“.

The price of gold fell, according to the Cairo News Channel, in spot transactions, by 0.1%, to 1980.89 dollars an ounce, by 06:13 GMT, while US gold futures contracts settled at 1990.20 dollars..

Higher interest rates increase the opportunity cost of holding non-return gold bars, and the dollar rose 0.1%, which led to an increase in the cost of gold for buyers holding other currencies..

“Some rise in US Treasury yields after preliminary PMI data on Friday is keeping downward pressure on gold prices,” said Yip Jun Rong, market analyst at IG.“.

Gold prices fell more than 1% on Friday, after the release of surveys showing that business activity in the United States and the eurozone picked up pace in April..

And the “CME VideoWatch” tool shows that the markets are betting 88.6% that the Federal Reserve will raise interest rates by 25 basis points at its scheduled meeting on the second and third of next May..

Moreover, the European Central Bank is expected to raise interest rates by a quarter of a percentage point on May 4th, with the possibility of raising them by half a point, and the Bank of England is expected to raise interest rates to 4.5% on May 11th..

As for other precious metals, silver fell in spot transactions by 0.3% to $24.95 an ounce, platinum fell 2.1% to $1100.45, and palladium fell 1.1% to $1583.94.