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Investing.com – (Updated at 21:30 Riyadh time after the US Federal Reserve’s decision)
Gold prices rise after the US Federal Reserve decided to stabilize interest rates while setting a strict plan for the future that includes raising interest rates by 25 basis points again before the end of 2023, while reducing the pace of interest rate cuts in the next four years.
Spot gold prices (Spot) rise by 0.63% to $1,943.55 per ounce, while gold futures prices (Futures) rise by 0.6% to $1,965 per ounce.
For more on the interest rate decision and the US Federal Reserve’s statement:
Gold before the Fed’s decision
Updated at 17:15 Saudi time
Gold prices turned towards rising after they were declining during these moments of today’s trading with the decline in the dollar index, and this comes in conjunction with the approaching issuance of the interest rate decision by the US Federal Reserve.
Gold futures rose 0.53% to $1,964 an ounce.
Meanwhile, spot gold contracts rose by 0.62% to $1,943 per ounce.
Gold in the morning before the American session
Gold prices fell during trading today, Wednesday, as caution prevails among investors ahead of the interest rate decision of the US Federal Reserve, as the US central bank is expected to maintain interest rates at their current levels, but the Federal Reserve may open the door to further increases later in the year. this year.
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Gold and dollar now
It fell by 0.15% to $1,951 an ounce.
It fell by 0.1% to $1,930 an ounce.
On the other hand, it stabilizes at 104.837 points.
Gold at settlement yesterday
Gold prices stabilized at the settlement of trading yesterday, Tuesday, near the highest level in two weeks, with the beginning of the Federal Reserve meeting to discuss the monetary policy decision, which is scheduled to be issued today.
The OECD recommended that the Federal Reserve keep interest rates at the current level of between 5.25% and 5.5% until the second half of 2024, with further tightening of monetary policy by the European Central Bank and the Bank of England.
While Goldman Sachs (NYSE:) believes that the Federal Reserve has finished raising rates this year, even if the chart it will release after the end of the monetary policy meeting tomorrow shows the possibility of raising rates again.
Upon settlement, gold futures for December delivery settled at $1,953.7 per ounce, the highest settlement since the beginning of September.
The upcoming Fed decision
The Fed’s interest rate-setting policy committee will issue a new monetary policy statement and interest rate decision at 21:00 GMT, and Fed Chairman Jerome Powell is scheduled to hold a press conference at 21:30 GMT.
“So far, real yields have remained elevated in the run-up to today’s Fed meeting, which reflects the Fed’s hawkish stop scenario and has kept gold prices somewhat cautious,” said Yap Jun Rong, an analyst at IG.
He added: “The focus will be on whether the new economic forecasts that the Federal Reserve will issue will pave the way for additional tightening of monetary policy or not.”
On Tuesday, US Treasury Secretary Janet Yellen said on Monday: “She does not see any indications that the US economy is going through a recession,” but she warned that the failure of Congress to pass legislation to keep the government running portends a slowdown in the economy.
“I don’t see any signs that the economy is at risk of contraction,” Yellen told CNBC, noting that “the American labor market also remains strong and inflation is declining.”
Earlier, gold prices derived support from fears of a government closure in the United States, in light of the decline in the dollar index with expectations of stabilizing interest rates by the Federal Reserve.
This caused a rise in inflationary pressures and raised expectations that the US central bank would keep interest rates higher for a longer period.
Meanwhile, spot gold may retreat to a narrow range between $1,917 and $1,921 per ounce, with it failing to break the $1,933 to $1,935 resistance zone, according to Reuters technical analyst Wang Tao.
other metals
Spot fell 0.7% to $23.08 an ounce, and platinum fell 0.7% to $932.29, settling at $1,259.39.
2023-09-20 18:40:00
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