Today, the price of gold fell slightly following the rather hawkish statement of the Federal Reserve (Fed) and caused the market to review the issue of interest rate hikes.
Now, the movement of gold demand is seen to be relatively slow and reduced due to concerns about the conflict in the Middle East (Israel-Hamas), it also causes investors to stop for a while.
After a 10% surge in prices last October, gold was seen continuing to rise in early November. However, it continued to plunge to its lowest level this week.
However, gold prices managed to see some gains on Thursday after a disappointing Treasury auction. It prompted more bond sales and many traders turned to gold sales.
So here it can be seen that the US dollar this week has seen a strengthening following the recent hawkish statements.
Fed Chairman Jerome Powell has warned that the US central bank will tighten monetary policy by raising interest rates if inflation continues to rise.
