The Investors rushed to take refuge in safe currenciesas andl US dollarthe Swiss franc and the yen, following Russia’s warning about updating its nuclear doctrine. In addition, gold prices rise this Tuesday for the second consecutive day and reach one-week highsa, as the dollar retreated from recent records and investors were waiting for the comments of the Fed officials to have clarity on the policy of rate cuts.
Spot gold rises 0.9% to $2,634.78 an ounce, the highest level since November 11. Prices gained 2% on Monday, recovering from a two-month low hit on Thursday. US gold futures added 0.9% to $2,638.70.
“The selling has dried up and that is attracting potential buyers who were sitting on the fence waiting for the market to stabilize to get back in,” said Ole Hansen, head of commodities strategy at Saxo Bank.. “The dollar has stopped rising and that was probably the necessary trigger.” The escalation of attacks in the war between Russia and Ukraine also boosted gold. Russia launched its largest airstrike against Ukraine in almost three months on Sunday.
Among other metals, spot silver rose 0.8% to $31.4, hitting a one-week high earlier in the session. Platinum fell 0.2% to $965.41, palladium remained stable at $1,003.43.
Investors take profits from the dollar after recent highs
The US dollar retreated as investors took profits after last week’s stellar rally, which saw it reach one-year highs. The depreciation of the dollar makes gold cheaper for buyers of other currencies.
Several Federal Reserve officials are scheduled to speak this week, which could offer more information on the path to rate cuts.s. Traders currently see a 61% chance of a 25 basis point cut in December.
The dollar index, a measure of its value relative to a basket of currencies, rose 0.3% to 106.53 points. Last week it reached 107.07, its highest level since November 2023.
The greenback has risen more than 2% this month, boosted by reduced expectations about the extent of the Federal Reserve’s rate cuts and views that US President-elect Donald Trump will adopt inflationary policies. .
The dollar started the European session with a small gain, as investors closely monitor Trump’s search for a Treasury secretary. Among the names being considered are Apollo Global Management CEO Marc Rowan and former Federal Reserve Governor Kevin Warsh.
Markets: what happens with other currencies, this Monday, November 19
The yen rose 0.7% against the dollar and 1.2% against the euro, hitting a multi-week high against the single currency at 161.50 yen.
The Swiss franc rose 0.4% against the euro, to 0.9318 units per euro, after reaching 0.9305 units, its highest level since the beginning of August.
Investors are also awaiting negotiated euro zone wage figures, due on Wednesday, and regional purchasing managers’ surveys, due on Friday, which could be crucial to the central bank’s decision. European in December.
The euro fell 0.4% to $1.0553. Last week it hit $1.0496, its lowest level since early October 2023.
Source: Ambito
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