FED's Effect on Gold; Will the Decline Continue?

FED's Effect on Gold; As gold prices continued to decline, investors turned their eyes to the US Federal Reserve (Fed). The acceleration of the expectation of an interest rate hike after the statements of Fed officials pulled gold prices down. Economists predict that the strong dollar will continue to suppress gold.

Gold prices upset investors. Due to the strengthening of the dollar and the expectation that central banks will raise interest rates to rein in inflation, gold fell to its lowest level in six weeks. As expectations that interest rates will continue to be raised aggressively increased in global markets, this led to a decline in gold. On Friday last week, Fed Chairman Jerome Powell emphasized the central bank's commitment to rein in inflation, which accelerated the series of losses. This week, Fed officials continued their hawkish statements, further accelerating the decline in gold.

Gold prices; How much was gold on 06.09.2022?

Gram Gold:

Gram gold, which takes its place among investment preferences, is currently traded at 998 liras.

Quarter Gold:

In the same minutes when the gram of gold was 998 lira, the quarter gold buying price was determined as 1.651 TL, while the selling price was positioned at 1.673 lira.

Half Gold:

Half gold is bought at 3.293 lira, while the selling price is traded at 3.341 lira.

Reşat Gold:

While the reşat gold is bought from 6.619 liras, the selling price is traded at 6.688 TL.

Republic gold:

While the purchase price of republic gold, which is one of the preferences of those who want to invest, is 6.587 lira, it is offered for sale at 6.656 lira. In his speech at the beginning of the week, New York Fed president John Williams underlined that interest rates should probably rise above 3.5 percent at some point to contain price pressures. Richmond Fed President Thomas Barkin also said the central bank would "do whatever it takes" to curb inflation. Ravindra Rao, head of commodity research at India-based investment firm Kotak Securities, noted that the weakness in gold could continue, adding, "Concerns about the health of the Chinese economy are also putting pressure on the price, which could hamper consumer demand." Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!