The price of gold fell below $1,700 an ounce

The price of gold fell below $1,700 an ounce
The price of gold fell below $1,700 an ounce

Gold continued to fall on Thursday morning, trading below $1,700 a troy ounce on expectations that the US Federal Reserve will not slow the pace of its monetary policy tightening.

According to data from today’s trade, as of 9:25 a.m. Bulgarian time, the price of December gold futures on the Comex exchange in New York fell by $12.30, or 0.73%, to $1,696.80 per troy ounce.

On the spot market, the precious metal traded at $1,688.12 per troy ounce, Trading Economics reports.

The price of December silver futures at the same time fell 0.44% to $19.483 an ounce.

Markets once again turned their attention to the Fed’s monetary policy, expecting the regulator to raise key interest rates at its next meeting on September 20-21. According to CME Group, 70% of analysts expect an increase of 0.75 percentage points, while the remaining 30% of experts allow the pace of increase to accelerate to 1 percentage point.

Investors began to assume an acceleration in the rate of increase in refinancing rates in the US after the release of annual inflation statistics, which turned out to be higher than expected. The indicator fell to 8.3% in August from 8.5%, although it was expected to be around the 8.1% level. Inflation remains well above the regulator’s 2% target. The tightening of monetary policy in the US has been accompanied by increases in US government debt yields and the dollar, acting as a negative factor for gold as a profitable and “safe” investment.

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