Eyes Turned to the FED About the State of Gold

While gold, the safe haven, is benefiting from the Fed minutes, investors are waiting for the second quarter growth figures and inflation data, which will be released tomorrow.

Spot gold continues its movements at the level of $1,850 with the help of factors such as the potential recession in the USA, the shutdowns in China and the Ukraine war, while feeling pressure against the stronger dollar and rising bond yields. Minutes from the previous Fed meeting, released on Wednesday, showed officials agreed to raise rates by half a point at the next two meetings, with no indication of a more aggressive rate hike plan. While it was seen that the tone used in the minutes was softer than expected, it was underlined that this situation could change gears by being more flexible in the coming period if the authorities deem it necessary, and that the policy to be followed in the future will be based on more data. While Fed Atlanta President Raphael Bostic warned investors to be careful, Greater Asia Director Ilya Spivak, who said, "Concerns about economic growth caused the tightening prices for the Fed's 2023 term funds to be pulled down," added that attention is now on US data, including second-quarter growth and inflation. Ilya Spivak said, “If downward revisions for growth do not occur and inflation is higher than expected, this may cause the dollar to strengthen and gold to be suppressed. However, if there is a downward surprise in inflation and the softening in policy continues, gold may rise.