Gold falls amid prospects of tightening monetary policy of US Federal Reserve

Gold prices fell on April 25 morning on the approaching prospects for further tightening of the monetary policy of the US Federal Reserve System (FRS), Report informs referring to the auction data.

The price of June futures for gold on the New York Comex exchange fell by $16.4, or 0.84%, to $1,918.4 per troy ounce. May futures for silver fell 1.74% to $23.837 an ounce.

Gold prices continue to decline after falling by almost 3% in the last week. Investors are focused on the statements of the Fed representatives regarding the course of the regulator’s future policy. Earlier, Fed Chairman Jerome Powell already announced the need to continue raising the discount rate, and also announced its growth by 0.5 percentage points at once following the results of the May meeting.

Such expectations, in particular, have become a growth factor for the dollar. A more expensive dollar makes gold less profitable for holders of other currencies. This, as well as an increase in the yield and, accordingly, the attractiveness of US government debt as an alternative to the precious metal direction of “reliable” investment reduces the demand for gold.