New record under gram – Bloomberg HT
Gold broke a record as the Fed’s interest rate hikes seemed likely and rising risks in the US economy boosted demand.
Spot gold slid to $2,038 in the early hours after it saw an all-time high of $2,075 an ounce at $2062.99 per ounce. Gram gold, on the other hand, was reduced to 1277 TL after the record renewal with 1291 TL.
The Fed raised rates by 25 basis points on Wednesday, signaling that this could be the last increase in the current tightening cycle. It is stated that while Fed Chairman Jerome Powell cools the expectations for a rate cut, the tone used in the statements provides support for pricing for a easing at the end of the year.
However, the precious metal is considered to be supported by a number of economic and political risks. While the possibility of a recession in the USA has become possible, concerns about the country’s banking sector after the bankruptcy of First Republic Bank and China’s post-virus recovery still seem weak are among these factors.
ABC Refinery Global Head of Corporate Markets Nicholas Frappelli said the main price drivers are more deposit outflows at US regional banks and continued news flow of debt ceilings are likely, while prices may consolidate in the very short term, but he expects a strong attack to the $2,075 level.