TDR Capital Director Predicts ECB to Raise Interest Rates, Gold Prices to Hit Record Highs

The European Central Bank Expected to Raise Interest Rates

Interview with TDR Capital Commercial Director Seif Kaddoura

In an interview with Agency, TDR Capital commercial director Seif Kaddoura expected the European Central Bank to raise interest rates by 25 basis points at its next meeting.

Kaddoura said there is a greater chance that the European Central Bank will set interest rates at a higher rate than the US Federal Reserve.

He added that further rate hikes by the Federal Reserve are expected.

Predictions for Gold Prices

He explained that the Fed is unlikely to set the interest rate right now, due to Jerome Powell’s claims that as long as labor market data remains strong, there is room for interest to rise.

And that gold prices should see more highs record in the coming months at 2180-2300 dollars per ounce during questyear or next year.

He said the $1930 an ounce level, which he has been witnessing in recent days, could be the low point gold hits in the coming months.

Inflation in the Euro Area

Inflation in the area of the euro fell to 6.1% last May on an annual basis, the lowest level since February 2022.

This drop in inflation exceeded the median forecast of 6.3%.

Furthermore, core inflation, which excludes food and energy prices, slowed more than expected to 5.3% over the same period.

Overall, Kaddoura’s predictions suggest that there could be significant changes to the global financial market in the coming months. Investors will be paying close attention to both the actions of the European Central Bank and the Federal Reserve, as well as fluctuations in gold prices.

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