The price of gold remained virtually unchanged after the monetary policy of the US Federal Reserve on Wednesday night, says Thu Lan Nguyen, head of FX Research and Commerzbank commodities.
The lowest interest rates perspective in the US remains a gold support factor
“The decision to maintain interest rates without changes was not a great surprise. The fact that the projections of interest rates of the FOMC members also remained unchanged was probably more decisive. The majority continues to wait for two cuts of interest rates throughout the year.”
“This is approximately in line with the current market expectations (based on federal funds) and, therefore, it was not new. It is true that seven of the 19 members now do not expect interest rate cuts this year, compared to four before.”
“But even this hard line turn did not surprise the majority of market participants, since they themselves have significantly reduced their expectations of interest rates since May. In principle, however, the perspective of lower interest rates in the USA is still a gold support factor, even if it is unlikely to lead to another sudden increase in prices.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
