Gold prices decline with anticipation of the US Federal Reserve meeting

Books – Ahmed Wali:

Gold prices fell on Tuesday as the dollar rose, while investors awaited the US Federal Reserve meeting for any indication of when to cut interest rates this year.

In light of the high expectations that the Federal Reserve will keep interest rates unchanged in the two-day monetary policy meeting that concludes tomorrow, Wednesday, the market is awaiting updated expectations regarding the economy and interest rates from policymakers.

Tim Waterer, chief market analyst at KCM Trading, said that gold will remain above the support level at $2,150 per ounce, and as long as it can remain above this level, it may reap gains in the short term. Based on statements by Federal Reserve Chairman Jerome Powell this week, according to CMBC Arabia.

Waterer added that if the Fed focuses on the latest CPI, Producer Price Index, and labor market strength data, we will see some of those hopes for lower interest rates diminish.

Water explained that in this case we may see a kind of decline in gold below this support level, and it declines in the short term.

The price of gold globally has fallen to about $2,153.59 per ounce (an ounce is equivalent to about 31.1 grams of 24 karat), at the present time on Tuesday, a decline of 0.31%, according to the latest update of Bloomberg data.

The dollar rose 0.2% to its highest level in nearly two weeks, making gold more expensive for holders of other currencies.