Gold price fell below $1,750 with the strengthening of the dollar and the rise in bond yields, ahead of the Fed’s interest rate projection meeting to be held on Wednesday.
Gold is at a 5-week low as investors focus on Wednesday’s Fed meeting and the dollar strengthens. Gram gold, on the other hand, is trading in a narrow price range with the rise in the dollar exchange rate, despite the decline in global gold prices.
Fed officials are expected to signal at the meeting that the asset purchase program will be reduced. While 67 percent of economists surveyed by Bloomberg think that the reduction in asset purchases will begin in November, 21 percent expect the reduction to begin in December.
The fact that worldwide inflation was close to the peak of the last 10 years had also increased the expectations that the reductions in asset purchases could begin soon and that gold, an interest-free asset, would remain under pressure. Avtar Sandu, Senior Commodities Manager at Philip Futures, stated that it is still one of the controversial issues whether the Fed will reduce asset purchases, and said, “Fed’s reduction in incentives may put pressure on gold by increasing bond yields.
Ounce Gold Price
Gold, which climbed above $1,800 before the US inflation data announced last week, closed the week around $1,753 with expectations that global growth would continue strongly and asset purchases could be reduced soon. Starting this week with a decline, the ounce of gold was trading around $1,747 on Monday.
