an additional seventy-five point and a half increase in the price of gold
Gold is completing a five-week losing trend, and while sentiment seems to be improving, some experts think that the precious metal still faces a tough environment next week.
Currently trading at $1,721.40 an ounce, August gold futures aim for a more than 1% increase to close out the week.
“Next week, investors expect a 75-bps rate hike.”
Markets anticipate the Federal Reserve to increase interest rates by another 75 basis points next week, and this will be the focus of everyone’s attention.
Despite the dollar’s recent decline from 20-year highs, several currency experts predict that the Federal Reserve’s aggressive approach will keep the greenback strong.
However, according to Marc Chandler, managing director of Bannockburn Global Forex, the central bank’s decision might restrict gold price advances next week.
However, the Federal Reserve’s tightening cycle is seen by some observers as having a smaller influence on the U.S. currency and financial markets.
According to T.D. Securities’ currency specialists, the market has already priced in a lot of hawkishness, and Wednesday’s decision is more neutral for the dollar.
Some experts believe that the Federal Reserve may be nearing the conclusion of its tightening cycle, which would be very positive for gold in the face of mounting recession worries.