Gold rose for the first time in the past three days on Wednesday, right after the U.S. June inflation report and a falling dollar.
By TradingView
August gold futures rose 0.6% to $1735.5 an ounce. However, overall, gold has been on the downward trend for over a month already, and the precious metal lost 6% since the beginning of the year.
The dollar has fallen from its 20-year highs after consumer prices rose about 9%, at the same time gold rose in price to 1735 dollars.
Investors probably think that high inflation will hurt the economy so much that the Fed will stop raising rates and reverse them in the near future.
This is also evidenced by 10-year U.S. bond yields below 3% and a rate cut of 18 basis points by the first quarter of 2023.
At the same time, other analysts are recommending a record 100 basis point rate hike for July. According to a certain Fed tracking tool, there is a 70% chance of a full rate hike at the next meeting on July 27.
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