Gold prices continued to fall on Thursday continuing Wednesday's decline after the Fed's FOMC minutes. Gold prices have dropped to a low of $2326, continuing Wednesday's decline after a short correction.
The FOMC minutes held last Wednesday which were attended by many Fed officials maintained high interest rates at 5% - 5.50%. According to Fed officials, inflationary pressure is still persistent despite the cooling. High interest rates hamper demand for gold because cash and bonds are more attractive to investors due to higher gains. The Fed even discussed the possibility of raising interest rates to tackle inflation. Analysts predict the Fed's hold high interest rates at least until September.
Today's gold price fell to the price level of $2326.91 from a high of $2383.67, it appears that the price is drawing a bearish candlestick with a long body reflecting the sharp fall in gold prices.
The FOMC minutes held last Wednesday which were attended by many Fed officials maintained high interest rates at 5% - 5.50%. According to Fed officials, inflationary pressure is still persistent despite the cooling. High interest rates hamper demand for gold because cash and bonds are more attractive to investors due to higher gains. The Fed even discussed the possibility of raising interest rates to tackle inflation. Analysts predict the Fed's hold high interest rates at least until September.
Today's gold price fell to the price level of $2326.91 from a high of $2383.67, it appears that the price is drawing a bearish candlestick with a long body reflecting the sharp fall in gold prices.
