In this way the yellow metal is directed to a monthly rise of 7.8%, which would be the best since July 2020, and follows a seven-month losing streak.
“Overall, the picture is improving for both gold and silver. Gold is in a consolidation phase after recent gains and markets are in standby mode, awaiting more clarity from the Fed,” he said. Carlo Alberto De Casa, external analyst at Kinesis Money.
The US dollar index was down 0.4%, making bullion less expensive for other currency holders.
In turn, according to operators, “market participants are focused on Powell’s next speech to get any indication on the central bank’s political strategy before their December meeting.”
The Fed is expected to raise interest rates by 50 basis pointsafter four consecutive increases of 75 basis points, to control inflation. A smaller increase could boost gold.
“If Powell takes a hawkish stance, the dollar will strengthen and gold will go lower, probably as low as the $1,745 level. But if he is more dovish, gold could go as high as the $1,780 level,” he said. Edward Meir, an analyst at ED&F Man Capital Markets.
Investors will also be closely watching ADP’s national employment report. Spot silver rose 0.9% to $21.47 an ounce, on track for its best sub-monthly since December 2020. Platinum rose 1.4% to $1,016.00, on track for its highest monthly increase from February 2021.
Source: Ambito
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