After the presentation of the representative of the US Federal Reserve among analysts, the expectation of lower interest rates in the near future became stronger. The price of gold again confidently exceeded $ 1,400 per ounce.
An important event happened in Washington yesterday, focusing on the Fed and the value of gold. If at the beginning of the week, the price of gold was trading tentatively around the $ 1,400 mark, then yesterday it was able to firmly consolidate above it. Head of the Federal Reserve Jerome Powell reported to the congressmen for the work done in the first half of 2019.
During the hearings, Powell said that in recent months, the world has increased uncertainty about the prospects for further economic development. He added that low inflation in the US will last longer than expected. Last Friday, positive data on the US labor market came out, and analysts started talking about keeping rates at the current level. But after the words of the Fed chairman, expectations about their decline this year have again increased.
The protocol published yesterday following the Fed meeting confirmed the expectations of experts. For this reason, the price of gold again receives support for continued growth. Several Fedrezerv representatives even advocated an immediate reduction in rates in order to support economic activity in the country.
This morning, one ounce of gold was trading on the spot market at a price of $ 1,421, which corresponds to 1,261 euros. Tomorrow, on Friday, July 12, the latest data on US inflation will be published