On this Monday, Gold price rose to a high of $1,878.84 per ounce, and hit a low of $1,804.93 on Tuesday (a difference of $73.91), as gold investors awaited the Federal Reserve’s meeting about interest rate on this Wednesday night.

Rising inflation data, posing a challenge to the economy, is likely to lead the Federal Reserve to surprise the market with a rate hike of 0.75%, a percentage higher than expected at the meeting this week, according to the Wall Street Journal.

After rising to 8.3% in April, annual U.S. inflation for the 12 months to May 2022 was 8.6%, the highest since December 1981, according to data released by the U.S. Department of Labor on June 10. The next inflation update release is scheduled for July 13.

The Fed signaled to markets ahead of its June 4 meeting that it was ready to raise rates by 0.5% this week and plans to raise 0.5% again at its July meeting. But they also said their prospects depended on whether the economy developed as they expected. The U.S. Labor Department’s inflation report released last week showed that prices rose more than the Fed expected in May.

The Fed raised interest rates by 0.5% at last month’s meeting, the first rate hike since 2000, as opposed to the usual 0.25% increase. It is worth mentioning that the Fed raised interest rates by 0.75% at a meeting in 1994, at a time when the Fed was rapidly raising rates to curb a potential rise in inflation.

With interest rates rising and dollars in demand, this is a great opportunity for investors who don’t want to worry about high market risk to take a look at interest rate savings. This could be an important factor for strong investors to temporarily sell gold and wait to buy at a lower price.

This week, investors can sell gold between $1830-1850 with a stop loss at $1860 and a taking profit at $1765.

Analyst: Mr. Nhim Kosol, Independent Analyst