29.06.2022
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The price of gold slightly decreases against the backdrop of a strengthening dollar

MOSCOW, June 23 – PRIME. The price of gold on Thursday evening falls slightly due to the appreciation of the dollar against world currencies, markets are paying attention to the comments of the head of the US Federal Reserve System (FRS) Jerome Powell from the second speech before Congress, according to trading data.

The dollar strengthened the decline against the yen against the backdrop of data on the US labor market

As of 18.42 Moscow time, the price of the August futures for gold on the New York Comex exchange decreased by $1.85, or 0.1%, to $1836.55 per troy ounce. July silver futures fell 0.67% to $21.277 an ounce.

The dollar index (the exchange rate against a basket of currencies of six countries – US trading partners) grew by 0.18%, to 104.38 points. A stronger dollar dampens demand for gold, as it makes the metal less accessible to investors holding other currencies.

On Thursday, the head of the Fed again addresses Congress. Thus, Powell said that oil prices and most food prices are not under the control of the Federal Reserve. A day earlier, he said that the Fed remains committed to reducing inflation, and therefore a further increase in the discount rate would be appropriate. Signals about the monetary policy of the US Federal Reserve affect the dollar, to which gold is sensitive.

The Fed raised the key rate in June by 75 basis points, to 1.5-1.75% per annum. According to the CME Group, nearly 96% of analysts expect the discount rate to be raised again by 75 basis points to 2.25-2.5% following the July meeting.

Source: 1prime

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