Gold, Silver Prices Drop Ahead of Fed Decision Amid Stronger Dollar
Gold and silver prices declined on July 28 as investors awaited the US Federal Reserve's policy decision. The stronger US dollar reduced the appeal of precious metals, with COMEX gold down 0.78% to $4,045.20 per ounce and COMEX silver slipping 2.16% to $57.445 per ounce.
The decline comes as markets expect a rate hike in the coming months. According to CME FedWatch data, markets now assign a 36.3% probability of a 25-basis-point rate hike, up sharply from 16% a week ago. Expectations for a September rate increase have also strengthened.
Bindu Sharma, Founder and Creative Director of Mavitrra, noted that the defining feature of the gold market this year has been price volatility rather than the overall direction of prices. She added that buyers are using price corrections as opportunities to purchase instead of staying away during prolonged rallies.