World gold price “holds its breath” waiting for news from the FED

According to data from the Kitco exchange, this morning the price of gold delivered in the Asian market stood at 2,017.5 USD/ounce, down 0.9 USD/ounce compared to the closing price on Monday in New York but almost unchanged compared to the same time yesterday.

Experts say gold prices are facing downward pressure from the possibility of the Fed keeping interest rates higher for longer, but on the other hand, gold prices are also supported by geopolitical tensions in the Middle East - a factor that stimulates demand for risk prevention.

However, analysts noted that gold prices have slowed down somewhat as the US CPI (consumer price index) and PPI (producer price index) were hotter than expected, forcing the market to postpone expectations about the timing of the Fed's easing. Currently, there is only a 10% chance of a rate cut in March, and a 33% chance of a move in May. But there are still strong expectations that the Fed could start cutting rates in June.

World gold prices are slowing down, waiting for the FED's move. (Illustration photo)

Spot gold may move into a new range of $2,027-$2,031 an ounce after breaking out of its recent downtrend, according to technical analyst Wang Tao. Investor sentiment in the gold market has improved somewhat as the Chinese gold market resumed trading after the holiday.

However, the possibility that the Fed will not cut interest rates until June is putting downward pressure on gold prices. The market's attention is now on the minutes of the Fed's January meeting, scheduled to be released on Wednesday this week. Investors expect to find clearer signals about the Fed's monetary policy in these minutes.

Ole Hansen, commodities expert at Saxo Bank, said that although gold prices may face further selling pressure in the coming time, he still expects prices to increase in the long term.

“ We have repeatedly stressed in recent months that both gold and silver prices are likely to remain stuck until there is more clarity on Fed policy. Until the first cut is made, the market is likely to be ahead of the curve ,” Hansen said.

However, experts at Saxo Bank said that despite the downside risks, strong demand in Asia will continue to support gold prices.

Source: https://congthuong.vn/gia-vang-the-gioi-nin-tho-cho-tin-tu-fed-304319.html