Economic news
21.05.2024

Gold prices are showing a negative trend

The price of gold fell by about 0.7%, retreating from a record high, which was caused by partial profit-taking. The strengthening of the US currency also put pressure on gold.

Meanwhile, experts said that gold continues to be in high demand amid increased expectations of easing the Fed's monetary policy, as well as continuing geopolitical uncertainty. The data also showed that China buying has been exceptional in the first quarter with their bar and coin demand being very strong, recording its highest since 2017. These factors are offsetting the investment outflows in ETFs (exchange traded funds).

This week, investors will continue to follow the comments of Fed policymakers, as well as pay attention to the minutes of the Fed's May meeting, which will be published on Wednesday. According to the CME FedWatch Tool, markets see a 3.6% probability of a 25 basis point rate cut at the Fed meeting in June, a 23.6% probability of a rate cut in July, and a 61.8% probability of monetary policy easing in September.

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