Hani Milad, Head of the General Division of Gold and Jewelery at the General Federation of Chambers of Commerce, said that the global price of gold has now risen to reach $1,736 per ounce, compared to $1721 during today’s trading.
In a statement, he indicated that gold Contrasted with international expectations that expected its decline after the US Federal Reserve announced that it would raise interest rates by 75 basis points, to record 2.5%.
Milad explained, that raising the interest cast a shadow on the local market, bringing the price of 21 carat gold, recording 991 pounds, up 6 pounds from the beginning of morning transactions, 18 carats, 849.5 pounds, 24 carats, 1132.5 pounds, and the gold pound, 7928 pounds.
The Federal Reserve uses mechanisms to speed up or slow down the economy by moving interest rates up and down, as the Federal Reserve made borrowing almost free when the Corona epidemic appeared, in an attempt to encourage spending by households and companies, and the US central bank also printed trillions of dollars to boost the economy that The Covid virus destroyed it, through a program known as quantitative easing, but with inflation rising to unprecedented levels, this caused an intervention to collect liquidity to reduce inflation, and the Fed targets a 2% level of inflation.
Investors expect the Federal Reserve to raise its maximum target range to at least 3.75% by the end of 2022, and after the current hike of 75 points to reach the 2.5% interest rate, it may need to raise 125 points until the end of the year.