Gold prices soared after the Fed rate decision

[Polakandil]

The Fed's decision at yesterday's meeting finally held interest rates unchanged at 5.25-5.50% for the fifth time in a row. The Fed also emphasized that it would wait for more supporting data before cutting its benchmark interest rate.
As predicted by the market, it seems that the market response has caused financial markets to become more volatile. Gold, which was previously stagnant in the $2150 range, surged yesterday and even formed a new all-time high at $2222.77 before finally rebounding to $2203.
In the crypto market, most cryptocurrencies also experienced increases, Bitcoin jumped more than 9%, Ethereum rose 11%, and Solana rose 12%.

The soaring gold price seems to reflect the market looking for alternative safe haven assets amidst economic uncertainty. While the price of gold itself is influenced by several factors, as reported by the FXOpen blog article, several factors that can influence the value of gold are

• Inflation Expectations and US Currency: Anticipation of rising inflation and a weakening US dollar, triggered by large fiscal and monetary stimulus, may lift the XAU market.
• Demand Recovery in China and India: A gradual increase in consumer demand in key markets such as China and India, coupled with new investments, could support a rise in gold prices.
• Geopolitical Tensions: As global geopolitical conditions remain tense, the appeal of the yellow metal as a hedging instrument may increase, thereby potentially supporting its price.
• Cost Opportunity: As the opportunity cost of holding gold decreases, the attractiveness of gold among investors will remain, thereby potentially contributing to the growth of the XAUUSD exchange rate.

The price of gold is now around $2201, a correction after the price spike occurred. Technically, based on MA 50, it is estimated that bullish sentiment for gold in the long term is possible. In fact, several forecasting sites have predicted that the price of gold could reach levels above $3,000 in the next five years, such as Gov Capital predicting that the price of gold will soar to $3,368. in mid-2025.

Gold D1 Ticktrader

 

[Polakandil]

Gold prices continued their decline on Thursday after falling on Wednesday following the Fed's FOMC meeting minutes. Gold prices yesterday fell to a low of $2326 after a short-term correction.

The minutes of the FOMC meeting held Wednesday which was attended by many Fed officials maintained high interest rates in the range of 5% - 5.50%. According to Fed officials, inflationary pressures persist despite it's cooling

The impact of high interest rates hampers demand for gold because cash and bonds are more attractive to investors.

The Fed even discussed the possibility of raising interest rates to tackle inflation. Analysts expect the Fed to keep interest rates high at least until September

 

[VasilTodorov]

Gold prices continued their decline on Thursday after falling on Wednesday following the Fed's FOMC meeting minutes. Gold prices yesterday fell to a low of $2326 after a short-term correction.

The minutes of the FOMC meeting held Wednesday which was attended by many Fed officials maintained high interest rates in the range of 5% - 5.50%. According to Fed officials, inflationary pressures persist despite it's cooling

The impact of high interest rates hampers demand for gold because cash and bonds are more attractive to investors.

The Fed even discussed the possibility of raising interest rates to tackle inflation. Analysts expect the Fed to keep interest rates high at least until September

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I did see some news saying Russia and Britain have issues and problems and china is getting in more conflict with the other part i cant remember the name of that country. if these are true, the possibility of war and bad situation makes gold get more power and price.

 

[Polakandil]

I did see some news saying Russia and Britain have issues and problems and china is getting in more conflict with the other part i cant remember the name of that country. if these are true, the possibility of war and bad situation makes gold get more power and price.

Rumors of concerns about World War 3 have recently become more prominent because the geopolitical map seems to be divided into Western and Eastern blocs, and several countries such as BRICS have also reportedly abandoned the USD which allows for sharper de-dollarization. Usually, when the USD weakens, the price of gold will rise, and vice versa. However gold volatility is very high, and trading without risk management on gold can lead to big losses