The Fed decided to raise rates by 25 basis points on Wednesday (July 26) and said another 25 basis point hike could take place in September 2023 based on the data at the time. . However, Mr. Powell also emphasized that the Fed does not forecast the possibility of a recession in the US economy.
Nicholas Frappell of ABC Refinery said that gold prices are still trending up in the medium and long term.
Gold prices are very sensitive to interest rate hikes because rising interest rates increase the opportunity cost of holding non-yielding assets like gold.
And Ilya Spivak of Tastylive said that gold prices could come under pressure as the market leans towards the forecast that the Fed will have another rate hike this year.
Investors are also keeping an eye on the European Central Bank (ECB) policy decision to be announced later in the day, with the ECB expected to raise interest rates for the ninth time.
Nicholas Frappell of ABC Refinery said that gold prices are still trending up in the medium and long term.
Gold prices are very sensitive to interest rate hikes because rising interest rates increase the opportunity cost of holding non-yielding assets like gold.
And Ilya Spivak of Tastylive said that gold prices could come under pressure as the market leans towards the forecast that the Fed will have another rate hike this year.
Investors are also keeping an eye on the European Central Bank (ECB) policy decision to be announced later in the day, with the ECB expected to raise interest rates for the ninth time.
