Gold prices lose more than 4%, led by gains in the US dollar
Gold prices witnessed a decline on Thursday morning in the European market, recording the fifth consecutive daily loss, falling below the $1800 level per ounce. monetary policy, as he raised his expectations for growth and inflation rates.
The Gold traded at $1795.12 an ounce, the lowest since the beginning of last May, down by 0.9% from the opening level of today’s session at $1811.59 an ounce, at the end of yesterday’s trading, the yellow metal lost about 2.6% for the fourth consecutive day, recording the largest daily decline since the beginning of January last year, following the Federal Reserve’s decisions.
Gold prices decline after the USD rising
The US dollar rose, with the increasing demand for buying the US currency as the best alternative and safe investment, following the results of the Federal Reserve meeting, and the dollar index continued to achieve gains for the third day in a row by about 0.5%, reaching its highest level in two months, 91.85 points.
FED keeps the interest rate
The Federal Reserve kept its monetary policy unchanged, but changed its forecast for the first time to be its first increase in 2023, and attributed this to the economic recovery at a faster pace than expected.
The bank’s expectations indicated an increase in the interest rate during 2023 to reach 0.6%, which means that the bank will raise it twice by 25 basis points during the year 2023, while the expectations of March indicated an increase in interest rates to 0.1%.
On the other hand, the bank raised its expectations for inflation rates during this year from 2.4% in its expectations in March to reach 3.4%, and in 2022 and 2023 it raised its expectations to reach 2.1% and 2.2%, respectively, from the total of the previous average expectations of 1.8%.
However, the US dollar’s gains were limited by the jobless claims data, which came less than expected. As the claims rate rose to its highest level in a month at 412 thousand, while expectations indicated a decline in claims at 360 thousand applications.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.