The free fall of the world ounce gold price continues and for the first time since May, we are witnessing the fall of the world gold price below $ 1800. The trend was in the form of resistance during April and broke in early May. However, the recent downward movement of gold has caused the XAUUSD to fall to the price floor of the last 10 weeks.
The main reason for the fall in the price of an ounce of global gold is the meeting of the US Federal Reserve. The Federal Reserve shocked everyone last night. The world's largest central bank has indicated two stages of raising interest rates by the end of 2023. The central bank will also soon reduce the volume of monthly bond purchases. The Federal Reserve's tendency to gradually withdraw from expansionary monetary policy has pushed down the price of an ounce of global gold. US 10-year Treasury yields also jumped to 1.56 percent. Rising interest rates or bond yields are always to the detriment of interest-free assets such as gold.
The main reason for the fall in the price of an ounce of global gold is the meeting of the US Federal Reserve. The Federal Reserve shocked everyone last night. The world's largest central bank has indicated two stages of raising interest rates by the end of 2023. The central bank will also soon reduce the volume of monthly bond purchases. The Federal Reserve's tendency to gradually withdraw from expansionary monetary policy has pushed down the price of an ounce of global gold. US 10-year Treasury yields also jumped to 1.56 percent. Rising interest rates or bond yields are always to the detriment of interest-free assets such as gold.
