Why did gold prices fall before the Fed’s decision? By Investing.com

Investing.com – It fell to its lowest level this week, touching the $2,150 level, and the yellow metal is expected to fall to lower levels if the commodity market does not succeed in ending the week above this level.

The Spot chart showed a decline approaching 0.28%. This is a difficult week for commodities as gold and oil are trading in the red range.

It fell by 0.88 points, sending it down more than 1%, with its price falling to $86.48 on Wednesday. In addition, the price fell by 1.14%, losing its value by 0.94 points and falling to $81.76. Therefore, commodities such as gold and oil are suffering losses this week, making investors lose money.

He is expected to announce his decision today, which everyone is waiting for.

So why are gold prices falling?

Gold prices fall as the US rises ahead of the Federal Open Market Committee meeting today. The US dollar DXY index rose to 104.10 on Wednesday hours before the Federal Reserve meeting on Wednesday. The dollar crushed gold, oil and other commodities to occupy the top of the financial chain this week.

The decline in gold prices is due to the Federal Reserve maintaining its stance of raising interest rates for a long period. Later, this development boosted revenues and put the dollar on a pedestal.

“This decline is attributable to strong inflation numbers out of the US last week, which fueled expectations that the Fed will maintain its high interest rate stance for an extended period,” said Arsalan Butt, senior commodities and indices analyst at FX. Leaders.

Apart from gold, the US dollar also outperformed local currencies like the Indian rupee on Wednesday. The US dollar rose within 24 hours, causing the rupee to fall to 83.18.