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These words will make gold investors happy: ‘Whatever the Fed does …’ – The right address for financial news

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The ever-increasing risk of recession concerns in world economies continues to affect asset prices. Uncertainties over the monetary policy path of global central banks amid inflation and recession risks weighed on equity markets, while this week’s monetary policy officials’ statements are expected to impact the direction of markets.

THE FED OFFICIALS CONTINUE THEIR EXPLANATIONS

While Fed Chairman Powell’s statements on Wednesday and Thursday are expected to reduce uncertainty about the Fed’s next steps, there are concerns that Powell’s further aggressive stance could reinforce recessionary prices in the country.

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While Fed officials maintained their hawkish stance at last week’s monetary policy meeting, it’s one of the question marks as to whether the 75bp rate hike, which took place for the first time since 1994, will be repeated. outside the July meeting. Although money markets are priced that the Fed will raise interest rates by 75 basis points in July with a 95% probability, Fed officials who released statements over the weekend said the inflation clues in the macro data will be effective in political decisions.

Cleveland Fed Chair Loretta Mester said she thinks the country will not enter a recession and that the bank’s delay in raising interest rates in fighting inflation hurts the country’s economy. Fed member Christopher Waller, on the other hand, said he will support a 75 basis point rate hike in July if macro data meets his expectations.

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GÖZLER CENTRAL BANK INTEREST DECISION

As the eyes of the Central Bank of the Republic of Turkey (CBRT) are on the Monetary Policy Committee (PPK) meeting on Thursday, economists participating in AA Finans’ expectations survey predict that CBRT will hold the benchmark rate. constant at 14 percent.

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LATEST MARKET SITUATION

With these developments, Dollar / TRY is trading at the 17.34 level, having closed at 17.3265 with a 0.1 percent rise on Friday. At the same time, the euro / TL exchange rate also meets with the buyer at 18.26 lire. While the price of ounce gold is valued at $ 1842, the gold price per gram is around 1028 lire.

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“WHAT THE FAITH DOES, GOLD WINS”

As the price of gold continues to be on investors’ agenda, George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, said earlier this year that gold has nothing to fear. from the Fed. The strategist also noted that this turned out to be true. Milling-Stanley pointed out this week that gold will win regardless of what the Fed does.

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Milling-Stanley also explained his views on how much gold an investor should have. The strategist said that research has shown that the optimal level of gold in a portfolio is around 10%. He also mentioned that during turbulent times this level can double. And Milling-Stanley said, “If these aren’t turbulent times, then I don’t know what it is.”

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