The price of gold has been declining for some time. The main reason for this decline has been explained as inflation. After the latest news from the Fed, gold prices reached the highest level last week. It is also predicted that these numbers will continue to rise until the last day of the week.
Why Did The Price Of Gold Rise?
The main reason cited for the rise in gold prices is the possibility that the expectation that the Federal Reserve will continue to raise interest rates due to high inflation will come true. It should be noted that the price of gold peaked last week after these expectations gradually found a realistic bottom.
If you recall, gold had a negative performance in February. It would not be wrong to say that these new performances and figures are on the rise.
Down Over 5% In February
Gold closed February down 5.3% on expectations that the Federal Reserve will continue to raise interest rates for an extended period to keep inflation in check. This was the worst monthly performance since June 2021.
There were other reasons for the decline in gold prices. Undoubtedly, China, the war, and global markets had a negative impact on gold prices. Apart from that, the rise of the dollar and sovereign debt were among the other factors that had a negative impact on non-interest bearing gold.
The troy ounce of gold is trading up 0.3 percent at $1,833 this morning. Silver, platinum and palladium each gained more than 1 percent.
How Long Will It Last?
Experts disagree on how long the rise in gold prices will last. While the general opinion is that the gold price will continue to rise for a while, it may also draw a stable curve again. It is not possible to make a clear statement about these prices at the moment.
There is only one fact: if the FED makes a decision that goes beyond the rumors of a rate hike or supports the rumors, the gold price can enter an uptrend beyond these reactions.
