As the world’s leading investment manager and financial market journalist, I am here to provide you with the latest insights on the price of gold and how it is being impacted by recent developments in the US Federal Reserve’s monetary policy.
Following the release of the Fed’s meeting minutes, the price of gold has dropped to $2370.00 per troy ounce. The cautious tone of the Fed’s policymakers has led to a shift in market expectations regarding interest rate cuts. Previously, two rate cuts were anticipated, but now the market is expecting no more than one. This has resulted in the US interest rate likely remaining at 5.5% per annum for an extended period.
The higher interest rates make gold less attractive as it does not yield interest, leading to the recent decline in gold prices. From a technical analysis perspective, the charts for XAU/USD show a downward trend with potential further declines expected. The MACD indicator and Stochastic oscillator both support the possibility of continued downward movement in gold prices.
In summary, the decline in gold prices is a result of the Fed’s cautious stance on monetary policy and the expectation of prolonged high interest rates. Investors should closely monitor the technical indicators and price levels as market conditions evolve.
Please note that the forecasts provided in this analysis are based on the author’s opinion and should not be considered as trading advice. It is important to conduct your own research and analysis before making any investment decisions.