The Fed’s rate hike has a certain impact on gold, because gold is denominated in US dollars . When the Fed raises interest rates, the US dollar will appreciate. After the US dollar appreciates , it will mean that people’s investment in gold will decrease, so gold The price will naturally drop. However, there may be upside for gold, which is expected to edge higher. Despite the Fed raising interest rates, the market is still uncertain, including the US mid-term elections, fiscal issues, etc. There are risks, the US and global economic recovery is at risk of slowing down, and central banks will continue to increase their holdings of gold, which will all Increase the attractiveness of gold.
Secondly, let’s take a look at the trend of interest rates in the United States and gold. Generally speaking, when interest rates are high, if the Fed raises interest rates, it may cause gold to fall, so from the overall point of view, the Fed raises interest rates. The impact on gold is still relatively large. If it is physical gold, it is also good to consider staying at home as a decoration.
However, it should also be noted that the interest rate hike by the Federal Reserve will be beneficial to the concept of gold stocks, because after the interest rate hike, everyone will be afraid of a sharp drop, and they will want to invest in gold stocks to avoid risks. Investors who buy are more If there are more funds, then the inflow of funds is more likely to rise.