GOLD - Discounts due to negative influence of the Fed

This morning, the price of gold was influenced by the US Federal Reserve's decision to maintain a "hawkish" stance on monetary policy, despite choosing not to increase interest rates at this meeting. The Fed has opted to pause interest rate hikes and keep the base rate unchanged within the range of 5.00%-5.25%, ending a streak of ten consecutive rate hikes since March 2022. By leaving the interest rate range untouched, the committee can gather more information and assess the impact of their monetary policy.

The DXY index, which measures the USD's volatility against six major world currencies, dropped from 103.3 points to below 102.6 points this morning. The United States is cautious about the potential impact of a monetary tightening that hasn't been observed in over 40 years. The decrease in PPI suggests that inflation will continue to cool down, possibly leading the US Federal Reserve to adopt a more cautious approach to raising interest rates. The USD also experienced a decline in response to positive market signals.

However, gold didn't experience significant growth and resumed its downward trend. Core inflation currently exceeds the 2% target, and high prices continue to negatively impact the economy.