• Home
  • Cryptocurrencies
  • Stocks
  • Commodities
  • About
    • Code of Ethics
    • Risk Warning
    • Privacy Policy
  • Contact
rkdream

Type and hit Enter to search

  • Home
  • Cryptocurrencies
  • Stocks
  • Commodities
  • About
    • Code of Ethics
    • Risk Warning
    • Privacy Policy
  • Contact
gold price
Commodities

Gold price outlook with central bank meetings in focus

Faith Nyawira
Faith Nyawira
July 19, 2022 2 Mins Read
18 Views
0 Comments

Gold price is trading in the green for the second session in a row ahead of crucial central bank meetings. As at the time of writing, it was at $1,713.85 after bouncing off last week’s low of $1,698.55.

gold price
gold price

Central bank meetings

On Thursday, the Bank of Japan (BoJ) and European Central Bank (ECB) are set to release their interest rate decisions. Investors expect ECB to increase interest rates for the first time in a decade as it strives to ease the heightened inflationary pressures. At the same time, BoJ is seen to continue with its massive monetary easing policy. However, it will likely adjust its inflation forecast for the current financial year from 1.9% to 2% in addition to lowering its economic growth forecast.

The US dollar is set to retain its strength against its peers in the ensuing sessions. For instance, in the past week, USDJPY hit a 24-year high of 139.44 yens. Besides, EURUSD hit parity last week before bouncing back. While the current easing of the US dollar’s rally has boosted gold price, its gains will likely be curbed by the strong greenback.

Fed’s stance

Gold price is also enjoying a relief from the relative quietness of the Fed officials ahead of the central bank’s interest rate decision scheduled for next week. In the past week, several FOMC members weighed in on the pros and cons of another super-sized rate hike.

 For instance, the central bank’s Governor Christopher Waller forecasts a 75 basis points increase in the July meeting. However, he added that he will be watching keenly on the crucial economic data for further cues on what the Fed should do to ease the 41-year high inflation. With regards to 100 basis points, which the markets is pricing in, the Waller stated that it is “getting ahead of itself”. On the other hand, officials such as the President of the Federal Reserve Bank of San Francisco, Mary Daly are opposed to such a huge increase even though they do not refute its possibility.

An environment of high interest rates tend to be bearish for gold price. Indeed, this is one of the factors behind the decline of about 17% over a span of four months. Seeing that investors are eyeing the Fed interest rate decision scheduled for 27th July, gold price may remain range-bound for the remainder of the week.

Related

Tags:

Gold

Share Article

Faith Nyawira
Follow Me Written By

Faith Nyawira

Faith Nyawira is an experienced financial analyst with over 10 years in the industry. She started her trading career while in college. Over the years, she has worked for some of the leading financial websites like iNvezz and InvestingCube. She graduated with a Bachelor’s degree in 2013. Faith lives in Nairobi and likes spending time with her son. She is an avid golf and Formula 1 fan.

Other Articles

Previous

Glencore Share Price to Crash as Commodities Supercycle Fades

Shiba Inu price
Next

Shiba Inu price prediction amid a steadily high burn rate

Next
Shiba Inu price
July 20, 2022

Shiba Inu price prediction amid a steadily high burn rate

Previews
July 19, 2022

Glencore Share Price to Crash as Commodities Supercycle Fades

No Comment! Be the first one.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

rkdream

rkdream is a fast-growing financial website covering the latest news and analysis on cryptocurrencies, stocks, and commodities.

Quick Links

  • About
  • Code of Ethics
  • Risk Warning
  • Privacy Policy

Categories

  • Cryptocurrencies
  • Stocks
  • Commodities

Follow Us

Twitter

© 2022, All Rights Reserved.

  • Cryptocurrencies
  • Stocks
  • Commodities
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}