It’s expected that the US Federal Reserve will raise interest rates by 75 bps, fuelling a violent sell-off across marketsBengaluru — Gold prices on Wednesday were lifted from near one-month lows by weaker treasury yields, ahead of a potentially aggressive interest rate hike from the US Federal Reserve as it seeks to combat inflation amid mounting fears of an impending recession.
The federal open market committee is expected to announce its decision on interest rates at 6pm GMT later in the day. Investors have dramatically raised their bets that the Fed will raise interest rates by 75 basis points rather than 50 bps, a swing in expectations which has fuelled a violent sell-off across world markets.
“Over the next few weeks, in our opinion, the overall downward trend in the gold price will be maintained with gold breaking below $1,800/oz,” Langford said.