09 November, 2018
Gold prices traded downwards on Friday during the Asian session at 1219.18, with the precious metal’s price being undermined by slightly bearish noises coming out from the Fed. As expected interest rates were unchanged yesterday but the Fed signalled that a December rise is likely and that the current pace of rate rises will likely continue next year. On the other hand, the dollar powered higher yesterday and continued to slightly climb in this morning’s trading which has put Gold under additional pressure. Since Gold is a non yielding asset the prospect of interest rate hikes makes other investments more attractive than the precious metal. At the same time an increase in the value of the Greenback tends to push Gold prices down, as the latter is calculated in dollars.