Gold fell below $ 1,800 on Thursday. After the interest rate decision of the US Federal Reserve on Wednesday evening, the price of the precious metal has already fallen by around $ 60 or more than three percent. Around noon, a troy ounce (31.1 grams) was then traded at $ 1,795 on the London stock exchange. The gold price was thus at its lowest level since the beginning of May.
In the USA there are first indications of a change in monetary policy. In its interest rate decision, the Fed continued to rely on the continuation of its extremely loose monetary policy. However, it was more confident about the US economy and signaled prospective interest rate hikes. In addition, Federal Reserve President Jerome Powell indicated that a debate had begun on reducing the billion-dollar asset purchases.
The statements of the US Federal Reserve ensured a sharp rise in yields on the market for government bonds. The fixed income is thus a bit more attractive for investors in direct comparison to gold. In addition, the comments by the Fed triggered strong gains in the US dollar. Since gold is traded in the American currency on the world market, a price increase makes the precious metal more expensive for many interested parties and thus slows down demand.
