Get ready for a significant drop in your gold investments.
Earlier this week, the Federal Reserve hinted at the possibility of implementing tighter US monetary policies sooner than anticipated. This announcement triggered a series of reactions in the market, causing values to fluctuate drastically as investors scrambled to secure their portfolios before the impending changes.
One of the major assets that took a significant hit following the Fed’s statement was gold. The value of gold bullion, a popular and easily traded investment in place of cash or credit, is forecasted to reach its lowest point in the past 15 months.
“Unless there are inflation concerns that the Fed cannot address, gold will find it challenging to enter a bull market,” analysts from Macquarie Group Ltd. commented.
The Fed’s positive outlook on the US economic recovery led to a stronger dollar but caused gold and energy shares to decline https://t.co/4IosvGj6bN
— Financial Times (@FinancialTimes) June 18, 2021
Spot gold prices plummeted to $1,767.34 on Thursday, marking the lowest point since last month. However, they rebounded slightly by 0.1% to $1,775.29 per ounce in the early afternoon. Overall, prices have dropped by 5.4% this week. According to central bank projections, the value of gold bullion may decrease by approximately $1,600 by the end of 2021.