The Tuesdaythe price of gold rose 2.4%reaching its highest level in more than five monthsafter data showing a smaller-than-expected rise in US consumer prices sent the dollar tumbling.
The dollar was flat against their rivals, 104.06 units, not far from the minimum six-month period of 103.57 touched after the inflation data. This made bullion more attractive to holders of other currencies.
“There is a clear belief that the end of the hardening cycle is in sightand traders are just waiting for the Fed to give the go-ahead,” he said. Craig Erlam, OANDA market analyst speaking to Reuters. “If the Fed softens its tone later todaywe could see the gold break and hold above $1,810potentially generating its own Christmas momentum this year.”
The Fed’s decision will be announced this afternoon. and will be followed by a press conference by the president of the institution, Jerome Powell. Given the improvement in inflation, market projections are for a 50 basis point increase in the monetary policy rate to 4.5%. If the forecasts come true, the Fed would end the increases of 75 basis points that it carried out four consecutive times this year and that positioned the interest rate of the first economy in the world at maximums since 2007.
The lower rates They tend to be beneficial for the ingotsince they reduce the opportunity cost of having the asset, which does not earn interest.
In other precious metals, silver was down 0.4% at $23.63; platinum was up 0.2% at $1,034.46; and palladium was down 0.2% at $1,925.74.
Source: Ambito
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