Gold-changing Fed suppresses expectations

Gold fell after the market re-included the possibility of a Fed rate hike in its pricing after the rise it gained from the bankruptcy of US bank SVB. Gold, after the gains stemming from the bankruptcy of Silicon Valley Bank (SVB), refocused on the Fed and retreated, albeit slightly, after a three-day increase of more than 5 percent. Spot gold is trading around $1,900 per ounce, while gold per gram is at TL 1,160. With concerns about the disintegration of the US financial system, investors are trying to understand whether the crisis means the Fed will have to abandon its aggressive monetary tightening strategy. The SVB crisis has triggered volatility in pricing for the Fed's interest rate meeting next week this week. On Tuesday, swap investors increased the probability of an increase from roughly 50 percent at Monday's close to nearly 80 percent. Rising interest rates are generally negative for the precious metal, which does not yield interest.