World gold price, US stocks rebounded because the Fed raised interest rates


Each ounce of gold increased by nearly 30 USD, and the DJIA ended a series of 5 consecutive declines thanks to the news that the Fed raised interest rates.

Closing the trading session on June 15, each ounce of world gold spot increased by 26 USD to 1,834 USD. This morning, the gold price continued to inched up, currently touching $ 1,836.

Precious metals gained on the back of the dollar and US government bond yields fell after the US Federal Reserve (Fed) announced an increase in the reference interest rate by 0.75% - the strongest since 1994. warning about economic risks. Dollar Index yesterday fell 0.2%.


World gold price movements in recent sessions.

However, Tai Wong, an independent New York-based metals analyst, said: "Gold's upside will be limited in an environment of high interest rates. The $1,880-1,900 zone will be difficult to break through." High interest rates make non-interest-paying instruments like gold less attractive, although gold is often used to hedge against inflation.

Goldman Sachs also thinks that the "asset shock" due to the blockade in China will constrain the precious metal outlook

In the US stock market, the Fed's interest rate hike made investors confident in the agency's determination to fight inflation. The DJIA ended 5 consecutive days of decline, gaining 1% yesterday to close at 30,668 points. The S&P 500 rose 1.46%. Nasdaq Composite up 2.5%.

US stocks fluctuated after the Fed announced a rate hike. However, the indexes peaked in the session after Fed Chairman Jerome Powell said in a press conference that "a rise of 0.5% or 0.75% is possible in the coming session". This is what surprised the market.

Stocks that depend on economic growth rebounded yesterday, on hopes that the rate hike would not push the economy into recession. Boeing shares rose 9.5%.

Tech stocks led the market yesterday, with Amazon and Tesla both up more than 5%. Netflix rose 7.5%.

The group of yachts also went up. Carnival and Norwegian Cruise Line rose 3.4% and 5.5% respectively. Airlines Delta and United increased 2%.

Except for energy, all major industry groups closed up yesterday. Consumer staples rose the most, with 3%.



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