Gold falls in price in anticipation of Fed monetary policy tightening

Gold prices fell moderately on October 19 morning on expectations of a tightening of the monetary policy of the US Federal Reserve System (FRS), reported from the auction data.

The price of December futures for gold on the New York Comex exchange fell by $4.65, or 0.28%, to $1,651.15 per troy ounce. December silver futures fell 0.04% to $18.593 an ounce.

Since the beginning of the year, the Fed has been constantly raising the discount rate, and following the previous three meetings, the increase was 0.75 percentage points each. Such measures are taken to combat high inflation. Tightening US monetary policy strengthens the dollar and boosts yields on US government bonds as an alternative to other "safe" assets such as gold.

According to the CME Group, 90% of analysts predict the Fed will raise another 0.75 percentage points in November, to 3.75-4% per annum.





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