Tuesday , May 18 2021

Gold operates stably amid uncertainty about US interest rates | Economy | Market

Gold prices stabilized Monday, after a statement by Federal Reserve officials (FED) about the economy resulted in uncertainty about how higher interest rates would rise in the United States, which put pressure on the dollar.

At 12:20 GMT, spot gold fell 0.1% to US $ 1,220.12 an ounce after rising in the previous session to US $ 1,225.29, a maximum of one week.

Gold futures in the United States are stable at US $ 1,222.60 per ounce.

The dollar was steady after last week saw its biggest weekly decline in two months as Fed members expressed fears about a global slowdown. The statement led the market to speculate that the monetary tightening cycle could end in the short term.

Higher interest rates increase the opportunity cost of holding bullion, which does not pay interest and results in storage and insurance costs.

So far this year the Fed has raised interest rates three times and is expected to raise them again in December.

"We will continue to see some consolidation between $ 1,200 and $ 1,250 for several weeks until we see some types of catalysts […], which could be a Brexit negotiation, a G-20 meeting between the United States and China, "said Hussein Sayed, FXTM strategist.

Palladium rose 0.2% at US $ 1,180 per ounce. Silver fell 0.1% to US $ 14.40 per ounce and platinum rose 0.2% to US $ 848.20 an ounce.

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