This information was revealed in a CNBC report citing Reuters. It is said that the Federal Reserve (Fed) has announced to keep interest rates unchanged.
With that, Fed Chairman Jerome Powell said that the idea of reducing interest rates is not on their radar for now. As a result the price of gold has decreased.
The global benchmark gold price fell by 0.3 percent in the spot market during the day under discussion. The price per ounce settled at 1976 dollars at 39 cents.
On the same working day, the price of US benchmark gold fell by 0.3 percent in the futures market. The price settled at 50 cents per ounce in 1987.
The Fed has kept interest rates steady. However, they have left the door open for monetary policy to further increase the cost of borrowing. Clearly, the US economy is strong. As a result, the US central bank may adopt a stricter policy.
Standard Chartered Bank analyst Suki Cooper said the risk of a global macroeconomic slowdown remains. The geopolitical crisis has fueled that fear. The strength of the major international currency, the dollar, continues to rise.
He also said that interest rates are expected to remain high for a long time. The central banks of the world are trying to reduce the pressure of inflation. This has the potential for a clear global recession.