Gold vs Fed Federal Reserve One of the factors determining gold price fluctuations | Invest in gold - Gold Investment

 

  
If we want to know the reasons and factors affecting the price of gold must Look at the overall global economy that each country Each continent How is the economy recovering, expanding, shrinking or falling? By analyzing gold, we will focus on United States Followed by the Eurozone, China and India, of course, if we want to know the impact on gold prices, everyone has to focus on the Fed (FED) or the Federal Reserve. One of the key roles in the impact on the price of gold goes up and down.

Let's get to know the Federal Reserve, also known as the Fed, which is the Federal Reserve established by Congress in 1913 (Congress created the Fed in 1913). To help promote a stable financial system for the United States

The Fed is made up of a seven-member Board of Governors of Washington, D.C., including a chair and vice president. All members of the committee are appointed by the US President and certified by the US Senate.

The Fed also has 12 Federal Reserve banks located in each. Cities across the country To be the reserve bank, the central bank's operating base and gather economic data from across the country to help the Fed monitor the economy and recognize the diverse information needed to develop and implement effective US monetary policy.

The Fed currently performs a number of important functions with the ultimate goal of promoting a strong US economy. One of the more recognizable functions of the Fed is to carry out US monetary policy. It has to do with influencing interest rates and the availability of money and credit in the US economy. Congress has commissioned the Fed to implement a monetary policy that maximizes employment and stability. If a country has a lot of workers The country will become wealthier Employment is the most important factor in the economy. The group of numbers for the unemployment rate consists of

    Non-farm payroll Non-farm employment Issued on the first Friday of each month.
    Unemployment rate The unemployment rate was issued along with the set figure for non-agricultural employment.
    Unemployment claims weekly number of unemployment claims. Will be released every Thursday every week.

These three news are the main ones that most investors are interested in. It is heavy on the numbers of non-agricultural employment that often cause the price of gold to move strongly at each employment level in order to provide more economic opportunities and stabilize it to promote growth for the household sector. And business In planning for the future

The Fed's monetary policy decisions are made by the Federal Reserve Board, comprised of a total of seven members of the Council, Governor and President from reserve banks. This committee meets regularly to assess conditions beyond monetary policy implementation.

The Federal Reserve also helps regulate and regulate the country's banks and supports the creation of a solid financial system for consumers, communities and businesses.

Federal Reserve (FED) has worked with community organizations, non-profits and other organizations across the country to address the issue of housing, promote access to finance for equality and for the advancement of economic development and sustainable communities

Fed. The FED also fosters financial stability, as financial instability can pose a serious threat to the broader economy and community. The Fed also acts as a link bank by clearing checks, making it more difficult for the economy to endanger the wider economy. Electronic payments and more The

Federal Reserve System is the Federal Reserve Bank of the United States Performing five general functions to promote efficient operation of the U.S. economy.

1-Implement national monetary policies to promote maximum employment, stable returns, and medium-term interest rates in the US economy.
2-Promote the stability of the financial system and endeavor to reduce risks through audits and cooperation in the United States and abroad.
3-Promote the safety and accuracy of each financial institution and monitor their impact on the overall financial system.
4-Promote the security and efficiency of payment systems and service payments to the banking industry and the US government that facilitates US dollar transactions and payments.
5-Promote consumer protection and community development through consumer-focused care and monitoring. By researching and analyzing emerging consumer problems and trends Community economic development activities and the administration of consumer laws and regulations

It can be seen that the entire financial system is determined by the Fed. That means that no matter where the Fed moves. Any announcement or press release will have an effect on the appreciation and depreciation of the US dollar. That means The largest and traded currency around the world Will have an immediate impact on the gold price The main Fed policies that have a significant impact on gold prices are: Announcement of interest rate fluctuations Policy on factors affecting inflation rates Whether to increase or decrease, which if the Fed (FED) has cut interest rates. Of course, money will flow out to countries with higher interest rates. Causing the dollar to weaken And the price of gold has to move up because investors or general individuals will invest their money in gold. On the other hand, if the Fed rises, interest will cause money to flow into bonds. Thus causing us to strengthen the dollar The price of gold will be reduced. The simple conclusion is that if the Fed has announced a premium

The Fed is also planning a number of areas. And there will be various announcements coming out continuously Gold investors should follow and analyze these news together to increase the risk of investing. Further news comes from news of interest rate hikes and inflation figures. And many other news that affect the price of gold, but important news that should be followed, such as

    Non-farm payroll Non-farm employment
    Unemployment rate The unemployment rate was issued along with the set figure for non-agricultural employment.
    Unemployment claims weekly number of unemployment claims.

Which each news will be of little importance Have an impact on the currency And different golds However, do not forget to follow the calendar, economic news, Economic Calendar and analyze the overview. Together with me .... ^ _ ^


Article and lectured by : Dolravee Phattharakulpimol
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