Gold prices fall as US rate hike expectations ease

Gold prices fell on Thursday after Federal Reserve Chairman Jerome Powell signaled that the central bank could raise rates again this year,
but lowered its expectations for rate hikes in 2024.

Topic

Analysis

Forecasts

Analysis

Gold prices fell on Thursday driven by expectations that
the US Federal Reserve will raise interest rates at a slower pace than previously expected.

Powell said on Wednesday that the Fed could raise rates again this year,
but lowered its expectations for rate hikes in 2024.

This supports gold demand, as higher interest rates can lead to slower economic growth,
which weakens gold demand.

In addition, data from the US Energy Information Administration showed that US crude oil inventories fell by 4.8 million barrels last week, the largest weekly decline since March 2020.

Data from Baker Hughes, an oilfield services company, also showed that the number of active drilling rigs in the United States fell by 10 last week, the third consecutive weekly decline.

These data are seen as positive for oil prices, as they indicate that US production may be limited, supporting global demand.

Forecasts

Gold prices are expected to remain high in the coming months, as analysts expect global demand for crude to remain strong.

However, gold prices are likely to remain volatile,
as investors will need to balance the risks of higher US interest rates with geopolitical events,
such as the war in Ukraine.

Investors may consider buying oil futures or exchange-traded funds (ETFs) as a way to profit from rising oil prices.

However, it is important to be aware of the risks associated with investing in oil, such as sharp price fluctuations.

Gold prices fall as US rate hike expectations ease

Gold prices fall as US rate hike expectations ease

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