Gold prices drop ahead of the Fed's critical interest rate decision
As the US Federal Reserve's interest rate decision to be announced on Wednesday is awaited, ounce gold fell to $4,328 and gram gold to 6,770 liras.
Ahead of the US Federal Reserve Fed's critical interest rate decision to be announced on Wednesday, the gold market started the week with a decline; ounce gold fell to $4,328 and gram gold to 6,770 liras.
A Decline Start to the Markets for the Week
As gold prices entered the critical week that will determine the direction of the markets, gold prices started the week with a decline ahead of the interest rate decision to be announced by the US Federal Reserve (Fed).
Latest Levels in Ounce and Gram Gold
Ounce gold, after rising up to $4,402 last week, fell to $4,328 in the morning session of the first trading day of the new week. In parallel with this pullback in ounce gold, gram gold was trading at the level of 6,770 liras during the same time zone.
Interest Rate Expectations and Mahfi Eğilmez's Statements
Sharing the predictions of Fed watchers two days before the critical decision, Economist Mahfi Eğilmez shared that expectations are at a rate of 86.2 percent for a 0.25 point increase and 13.4 percent for interest rates to remain unchanged.
Pressure on the Dollar Index and Precious Metals
Experts evaluate that if the Fed goes for an interest rate hike, the Dollar Index could gain value globally. With the strengthening of the dollar, it is foreseen that selling pressure on gold and other precious metals may increase.