The scenario that the US Federal Reserve (Fed) will stop raising interest rates is expected to trigger gold prices to continue to increase.
According to expert Kitco , the direction of gold prices is led by the US Federal Reserve ( Fed ). This week, the Fed will begin its sixth policy meeting of the year. During the meeting, Fed members will discuss economic forecasts and vote on any changes the agency will make regarding their monetary policy, such as increases or cuts. interest rate.
The expectation of economists and the financial industry is that the Fed will not raise interest rates after 11 hikes since March 2022. Reference interest rates in the US are currently at their highest level in 22 years , after the most recent increase in July. This scenario can also be seen in the famous prediction tool in the investment world - CME Group's FedWatch. This tool is predicting a 97% chance the Fed will not raise interest rates this week
The Fed's major monetary policy changes are all based on data. This time, the necessary data for policy adjustment is that inflation is on track to reach the 2% target. However, there are still many opinions that it is too early to conclude that the Fed will end the cycle of raising interest rates when the consumer price index (CPI) in the US last month increased by 3.7% over the same period last year. last.
Commenting on Reuters , Deutsche Bank economist Matthew Luzzetti shared: "Economic data since the Fed's June 13-14 meeting has continuously surprised on the positive side based on a rosy picture. than".
Luzzetti, like most analysts polled by Reuters , said Fed policymakers would probably not raise policy rates further. "They are just not ready to say so," this expert opined.
The scenario favoring stable interest rates will trigger a rise in gold prices. In fact, in the weekend session, spot gold price reached 1,945.6 USD per ounce, up 0.7% compared to the previous session. This is a positive signal after many consecutive sessions of price decline.
According to Reuters , international gold prices are supported by the weakening USD and the trend of buying safe-haven assets after the United Auto Workers union struck at three automakers in Detroit. Besides, expectations that the US may temporarily suspend interest rate increases also further supported precious metal prices.
Tieu Gu (according to Kitco , Reuters )
The scenario that the US Federal Reserve (Fed) will stop raising interest rates is expected to trigger gold prices to continue to increase.
According to expert Kitco , the direction of gold prices is led by the US Federal Reserve ( Fed ). This week, the Fed will begin its sixth policy meeting of the year. During the meeting, Fed members will discuss economic forecasts and vote on any changes the agency will make regarding their monetary policy, such as increases or cuts. interest rate.
The expectation of economists and the financial industry is that the Fed will not raise interest rates after 11 hikes since March 2022. Reference interest rates in the US are currently at their highest level in 22 years , after the most recent increase in July. This scenario can also be seen in the famous prediction tool in the investment world - CME Group's FedWatch. This tool is predicting a 97% chance the Fed will not raise interest rates this week
The Fed's major monetary policy changes are all based on data. This time, the necessary data for policy adjustment is that inflation is on track to reach the 2% target. However, there are still many opinions that it is too early to conclude that the Fed will end the cycle of raising interest rates when the consumer price index (CPI) in the US last month increased by 3.7% over the same period last year. last.
Commenting on Reuters , Deutsche Bank economist Matthew Luzzetti shared: "Economic data since the Fed's June 13-14 meeting has continuously surprised on the positive side based on a rosy picture. than".
Luzzetti, like most analysts polled by Reuters , said Fed policymakers would probably not raise policy rates further. "They are just not ready to say so," this expert opined.
The scenario favoring stable interest rates will trigger a rise in gold prices. In fact, in the weekend session, spot gold price reached 1,945.6 USD per ounce, up 0.7% compared to the previous session. This is a positive signal after many consecutive sessions of price decline.
According to Reuters , international gold prices are supported by the weakening USD and the trend of buying safe-haven assets after the United Auto Workers union struck at three automakers in Detroit. Besides, expectations that the US may temporarily suspend interest rate increases also further supported precious metal prices.
Tieu Gu (according to Kitco , Reuters )
