Your bullion is about to take a big hit.
Earlier this week, representatives from the Federal Reserve implied that tightening efforts of US monetary policies could be coming much sooner than initially anticipated. This announcement set off a chain reaction across the market, with values fluctuating wildly as everyone attempted to solidify their portfolios ahead of the oncoming storm.
One major bedrock institution of the market to take a nasty slap from the Fed’s word was gold. The value of gold bullion, a strong liquid investment in lieu of cash or credit, is projected to drop to its lowest value in the last 15 months.
“Absent inflation expectations threatening to become unanchored — with the Fed unwilling or unable to calm things — gold will struggle to return to a bull market,” strategists from Macquarie Group Ltd. wrote in a note.
The Fed’s confident outlook on US recovery boosted the dollar but caused gold and energy shares to fall https://t.co/4IosvGj6bN
— Financial Times (@FinancialTimes) June 18, 2021
Spot gold values hit a low low of $1,767.34 on Thursday, the lowest value since last month, though they recovered slightly by 0.1% to $1,775.29 an ounce in the early afternoon. Prices are down overall by 5.4% this week. By the estimates of the central bank, the value of gold bullion could be down by around $1,600 at the end of 2021.
