Due to increased inflation, it is expected that there will be a total of 7 interest rate hikes in the coming year (25 basis points each) to a total rate of 1.5% (last time rates were at this level was in the pre-pandemic 2019)
The first of which will be announced on Tuesday, March 15th - The Federal Reserve is expected to increase rates by 25 basis points. Increased rates will strengthen the dollar and lower demand for Gold. Which should have a pronounced effect as the U.S. controls the most gold in the world with 8,133 tons (World Gold Council)
However, the U.S. is just one part of this picture. The Ukraine-Russian conflict pushed Gold prices higher, leading to the breakout we see today. The 4th round of Ukraine-Russia peace talks is expected to occur on Monday, signaling increased potential for a diplomatic resolution to the ongoing war. Reduced possibility of further conflict will lead to a decrease of investors fleeing to safe-haven assets.
The first of which will be announced on Tuesday, March 15th - The Federal Reserve is expected to increase rates by 25 basis points. Increased rates will strengthen the dollar and lower demand for Gold. Which should have a pronounced effect as the U.S. controls the most gold in the world with 8,133 tons (World Gold Council)
However, the U.S. is just one part of this picture. The Ukraine-Russian conflict pushed Gold prices higher, leading to the breakout we see today. The 4th round of Ukraine-Russia peace talks is expected to occur on Monday, signaling increased potential for a diplomatic resolution to the ongoing war. Reduced possibility of further conflict will lead to a decrease of investors fleeing to safe-haven assets.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.