GOLD strong fluctuations after FOMC

2月1日

Gold prices fluctuated strongly after US Federal Reserve Chairman Jerome Powell strongly opposed expectations of loosening monetary policy in March. Specifically, at the first monetary policy meeting For the first part of 2024, the US Central Bank decided to leave interest rates unchanged but the head of this central bank, Mr. Powell, rejected the idea of ​​cutting interest rates in the spring, which many market participants did not like. school expected.

At the end of the session, the Federal Open Market Committee (FOMC) announced that interest rates would not change until the US Federal Reserve (Fed) has greater confidence that annual inflation is about 2 %.

After the meeting, traders reduced bets on the start of US interest rate cuts in March and expected monetary policy easing in May to be possible.

In another development, according to a recent report from the World Gold Council, global central banks' gold demand is strong in 2023 with a total purchase of 1,037 tons, of which China is still the main country. country with the greatest need. Experts from the World Gold Council also added that demand will continue to be maintained this year.