Gold traders are somewhat nervous as the first trading day of the second half of this year begins today. So far, gold prices are up nearly 2.6% YTD, and if you look at the performance for one year, it is up nearly 3.19%. Traders are wondering if the price will experience more retracement in 2023 or if we will see another high in 2023.Gold prices formed their all-time high back in April this year and nearly touched the level of $2050.
In the US, despite a stellar rally in the equity market for the first half of this year, which took a huge amount of like out of gold prices, the economic conditions aren’t really stellar. The threat of a possible recession taking place is still very much on the cards, as traders have grown a bit more cautious due to the new narrative of the Fed, which believes that there is a strong need for further rate hikes in the US.
As for the US, smart money believes that the Fed is very much done with its hawkish monetary policy rates. It is only using its language to manage market expectations, and in reality, it is more than likely that we will only get one more rate hike this year instead of two. Currently, the market is expecting two more interest rate hikes from the Fed, which means the current strength in the dollar index has a lot of noise baked into it.
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Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »