The Fed increased interest rates from the lowest level of expectations in the markets. There was a 50 basis point increase from the FOMC meeting, which was said to be up to 100 basis points in the markets and where the expectations of 75 basis points were not less.
Powell, who was in front of the cameras after the interest rate decision, clearly stated that the tightening will continue for at least two more months, but that it will not go beyond 50 basis points. Powell's statement that a 75 basis point increase was never on their agenda was perceived as an overly aggressive approach to tightening. After these messages, the rise in gold prices gained strength, while the decline in the US Dollar became clearer.
50 basis points increase boosted gold, US Dollar slumped
After the Fed's interest rate decision, there are moving minutes in the markets. The fact that the interest rate increase occurred at the lowest rate in the markets caused price increases in commodities such as gold.
The ounce price of spot gold climbed to $1,875 from $1,865, where it was before the decision. Gold rose above $1,880 after Powell's messages.
US Dollar Index is slightly bearish. US Dollar Index at 103.45 came below 103.20. Again, after Powell, the decline in the US dollar reached 1 percent. The index fell below 102 points.
The Euro/Dollar parity also climbed from 1.0540 to over 1.06 after the decline in the dollar.
There is also a decrease in Dollar/TL with the weakening of the US Dollar. The dollar/TL, which started the day close to 14,85, came under 14,75.
Brent oil, on the other hand, is above $110, with a daily increase of around 5 percent, with the rise that started in the evening.
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