The sharp contraction of the US economy provides a great deal of information on the direction of gold prices. Questions such as what will be the latest gold price situation, which gold investors are following closely and whether the rise continues, are almost on the lips of experts.
With the announcement of US GDP growth data in recent days, eyes have turned to commodity and dollar exchange rates. In line with announced data, the US economy contracted 1.6 percent in the first quarter. Analysts, who largely reflected their forecasts, predicted that this decline would be 1.5%.
Fed Chairman Jerome Powell had broadly accepted that the recession crisis was upon us, according to his statements on the country’s economy in recent weeks. After addressing the biggest inflation problem of the past 41 years in the United States, the Fed has decided to raise interest rates. While the aforementioned increase was 75 points, the US Federal Reserve recorded the highest increase in 28 years.
Presidents meeting at the Central Banking Panel 2022
2022 hosted by Portugal
Three important Central Bank presidents met in the panel called Central Banking. Fed Chairman Jerome Powell, European Central Bank (ECB) President Christine Lagarde and Bank of England Governor Andrew Bailey met to discuss inflation.
Pointing out that rising interest rates will slow the growth of the country’s economy, Powell said they hope the current positive atmosphere will continue for a while. Expressing that a soft landing in the economy is possible but difficult, the Fed chairman said he carefully raised interest rates, taking into account the possibility of a recession.
Gone are the days of low inflation
Stating that it is becoming increasingly difficult to go back to the days of low inflation, ECB President Lagarde spoke of the measures they will take in a context of high inflation. Bailey also said that they are trying to reduce inflation and that if the increase continues, their reactions will become more severe.
What is the last state under the ounce?
The shrinking US economy directly affected ounce gold prices, and the ounce gold price went from $ 1819 to $ 1813. Reaching back to 1817 levels, the ounce of gold continues to occupy the investor agenda. The ounce of gold, which was in a horizontal course during the day, saw 1822 levels at the end of the day.
Is Gram Gold Rising Again?
Gram gold, which is in line with the prices of the ounce of gold, continues to decline as the ounce of gold decreases. The price of the gram of gold, which fell to 967 lire, reached 972 lire at the last closing. Small-scale fluctuations offend estimates that the gram of gold could test 1000 pounds or more. Gold, which many investors regard as a safe haven, has brought with it a small confidence issue due to the sudden ups and downs it has been through recently. However, investors who are determined to invest in gold are predicting that the day of the upside will come.
Will the decline in gold prices continue?
One wonders how gold prices will evolve with the beginning of July, which left the last weeks of June with a rapid decline. One wonders whether the prices of raw materials, closely linked to millions of investors, will continue to decline.
Although the decisions made by the BRSA directly affect gold prices, the lasting decline worries the investor. The sudden rise in gold prices following the Fed’s interest rate decision has raised the possibility that the gram of gold could reach 1,500 pounds. In the next few days it will show in which direction gold will show, which continues to fall steadily. At this point it is necessary to listen to the advice of the analysts and not buy and sell in a panic.