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Fed rate hike conditions may be met before the end of 2022
As the U.S. dollar strengthened on Tuesday morning, gold prices fell in Dubai and globally.
At 9.15 am UAE time, spot gold fell 0.44% to US$1,760.14 per ounce and hit US$1,770.41 on Monday, the highest level since September 23.
In the UAE, the opening price of 24K on Tuesday morning was AED 213.0 per gram, while the opening price of 22K was AED 200.25 per gram, the opening price of 21K was AED 191.0, and the opening price of 18K was AED 163.75 per gram.
Cleveland Federal Reserve Bank President Loretta Meister said on Friday that the Fed’s interest rate hike conditions may be met by the end of 2022, adding that she expects the inflation rate to fall back to the central bank’s target next year.
Naeem Aslam, chief market analyst at AVA Trade, said that the central bank’s employment target may take a year or more to achieve an actual rate hike.
“Gold has traditionally been regarded as an inflation hedge, although the central bank’s reduction of stimulus measures and interest rate hikes tend to push up government bond yields, which translates into higher interest-free gold opportunity costs. Last week, China’s largest consumer of physical gold There has also been an increase in demand for, and activities in other Asian centers, including Singapore, have also increased,” Aslam said.
-waheedabbas@khaleejtimes.com
Wahid Abbas
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