Gold futures fell more than $20, falling off $1,810 today. by continuing to decline since yesterday Amid concerns about the Federal Reserve’s (Fed) interest rate hike
In addition, gold prices were also pressured by the dollar’s appreciation in response to the results of the Fed meeting yesterday.
At 7:01 p.m. Thai time, the COMEX (Commodity Exchange) gold contract will be delivered in February. It fell $21.50, or 1.18%, to $1,808.20 an ounce.
Gold prices are now down about 2.5% after hitting a 10-week high on Tuesday.
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies
Fed Chairman Jerome Powell said the Fed could raise interest rates by more than 0.25% to stop the inflationary spike from hurting the economy.
Earlier, the US Department of Labor said The Consumer Price Index (CPI), which measures inflation from consumer spending, jumped 7.0 percent in December, the highest level in nearly 40 years.
Meanwhile, investors are still keeping a close eye on the conflict between the US and Russia over Ukraine.
The Kremlin said today that Russia and the United States still have room for further talks. But apparently, Russia’s security demands were not met by the US.
Russia has made claims against the United States and the West to ensure that The North Atlantic Treaty Organization (NATO) will not accept Ukraine and other former Soviet Union countries. While the United States and its allies must withdraw their troops from the former Soviet Union countries.
“Considering the response letter from the US We cannot say that our concerns have been met,” said Kremlin spokesman Dmitry Peskov.
However, Mr Peskov said Russia will not rush to make any conclusions. After receiving a response from the US yesterday. Russia will take some time to consider its stance against the United States.