The price of gold declined and touch under the level of 1815 per troy ounce. It was happened after Powell said again The Fed may use their policy to decrease the inflation level which is now touching it’s highest level. 

In addition to respond this situation, treasury yield In the United States with 10 years tenor was raising again. It touched the level of more than 3%. Meanwhile, The USD come with the different story. 

This currency tried to come to it’s positive track after three consecutive days. So 75 basis point raise has been done By the organization. It won’t stop there. 

People believe that Federal Reserve Organization may raise their Rate again for 50 basis point for each. That will be applied in two next meeting ahead. This is believed by many analysts too. 

That Speculation Is Getting Bolder Due to High Inflation

The inflation level in America remains high until now. That is the highest one since 40 years ago. This situation makes a speculation is getting bolder due to a raising interest rate. 

Besides that, core inflation level is also above the expectation too. That is why; it is quite hard for gold to continue it’s positive trend. You could say that this valuable metal fails enough.

This precious metal was sold under a super trend indicator at the forex market. Furthermore, In the future it may fall of again. It is a continuous situation.

Those prices could go up to the level of 1798,00. That is especially if they are still steady under the resistance area of 1814.08 until 1822.00 range. 

USD Strengthened and Pushed the Gold Price

This metal slumped caused by the United States dollar and this country treasury obligation happened in the market lately. Those are the seen on Wednesday. 

The spot of gold price declined by 1.3 percent and touch the range of $ 1952.92 per ounce. That commodity was also sunk by 1.5% to $ 1956.60 at the Comex New York .

For your information, the American dollar index is now winning and above the air. The cause is a divergence policy created by Federal Reserve and also the other major central banks. 

It seems that The Fed is getting really serious to tighten it’s monetary policy by using interest Rate increase plan. However, the other central banks are still considering about Stagflation. 

Japan’s Central Bank Still want to Maintain It’s Low Rate

Before, this Central Bank of Japan applied the low interest rate. Due to the condition happened lately, it seems that they will want to maintain that decision and won’t change that. 

They would still do that although inflation is now hotter. The cause is a significantly raise of 10-year obligation yield in America. This must be highlighted properly by the market participants.

Bullard then shared his thought in a moment last night. What he said made people agree that the central bank in USA needs a high interest Rate to overcome the inflation increase.

Furthermore, Bullard said that the Fed Rate needs to be increased up to 3.5% until the end of this year. The cause is once again the inflation in that superpower country has been too high. 

The Hawkish Comment Weighting on Gold

The hawkish comments then came from the Fed’s members or representatives. This thing supports the value and interest Rate to step up. That is why; they can weight on gold. 

However, the risk of Geopolitical and short term inflation Are 2 aspects where will push the streams To get into this. At the end, it may hold the price in recent range for some weeks ahead.

The position of this commodity is in the middle area. In knew side, it is safe enough amidst the high inflation and unsure political economy situation.