gold prices They went up this Monday, May 15 due to the weakness of the dollar, as traders stuck to bets of interest rate cuts before the end of the year, though their attention was on the cap talks US debt.
Spot gold rose 0.4% and closed at $2,019.37 per ounce, after reaching its lowest level on Friday since last May 5, due to the reversal of the US currency, which fell from a five-week high. While, Gold futures fell 0.1% to $2,022.70.
“Investors will continue to move capital into gold as the prospect of a rate cut cycle continues to take hold over the next 12 months,” he claimed daniel ghaliCommodity Strategist at TD Securities.
Most market participants are still betting on at least one rate cut before the end of 2023according to the CME’s FedWatch tool. Higher interest rates make gold less attractivewhich does not pay interest.
The presidents of the Minneapolis Fed, Neel Kashkarinoted that more needs to be done to curb inflation, although the Atlanta Fed president, Raphael Bosticdid not agree and downplayed the chances of rate cuts this year.
Ghali stressed that any hawkish comments are “essentially ignored” because the market is figuring out what the Federal Reserve might end up doing based on the incoming data rather than what they are saying. For this reason, the spotlight this week will be on speakers from the Federal Reserve, including its chairman, Jerome Powell.
In other precious metals, spot silver gained 0.8% to trade at $24.11 an ounce; platinum rose 1.6%, trading at $1,066.27; and palladium rose 1.4% to $1,530.34.
Source: Ambito
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