As the world's largest economic power, the dynamics of the United States have a huge impact on the international financial market, in the past two years of continuous interest rate hikes, many financial products have been disrupted, dollar-denominated ** is no exception. Will the price of gold fall if the dollar raises interest rates?Normally, this is a great possibility, but because ** also has a strong safe-haven value, even if the Fed maintains a policy of high interest rates this year, gold prices are still at a high level.
First, the Fed's interest rate hike and the relationship
Will the price of gold fall if the dollar raises interest rates?Let's first figure out the underlying logic between the two. In fact, the US dollar interest rate hike generally refers to the Federal Reserve's increase in the federal interest rate, so in this context, the US dollar will be more popular with the outside world, so it will often perform well, and the international ** is denominated in US dollars, so when the US dollar appears, ** will be suppressed. However, we can find that the Federal Reserve is still in the cycle of raising interest rates this year, but the gold price has even broken through a record high, which is due to the great stimulation of risk aversion brought by geopolitical conflicts.
Second, it is unlikely that interest rates will be raised in 2024
There is actually another key reason for the successful breakthrough of the 2100 mark some time ago, that is, the Fed's interest rate hike is nearing the end, and now the market generally believes that the Fed will not raise interest rates again in 2024, and will officially take action to cut interest rates in the middle of the year. Will the price of gold fall if the dollar raises interest rates?If the interest rate hike will largely suppress gold prices, then the interest rate cut will inevitably bring greater positive effects to the market, so the prospect of next year is currently very optimistic, and it should be a good opportunity to enter the market, but there is a certain risk in investment, and investors should remember to use the price limit platform to do a good job of risk control protection.
Will the price of gold fall if the dollar raises interest rates?In the absence of interference from other factors, this is indeed a high probability thing, but considering that ** also has its own fundamental factors, we need to be more flexible in our judgment when trading. The good news is that the Fed will adopt a policy of cutting interest rates in 2024, coupled with the continuous increase in risk events, gold prices are expected to hit record highs again, and everyone has a good chance of getting a decent return as long as they pair it with a low-cost micro spread account.