The dollar and gold like to see-saw frequently. Therefore, these days, as the US currency weakens, the price of the metal strengthens.
The price of gold It remains stable this Wednesday, July 19, near the maximum eight weeks reached the day before, after the publication of economic data which raised expectations that the Federal Reserve of USA is nearing completion its cycle of increases of interest rates. Likewise, at dollar and metal like to play on the seesaw frequently. So these days, as the US currency weakens, the price of gold strengthens.
Spot gold is trading flat at $1,978.49 an ounce, while gold futures on USA showed a slight increase 0.3%reaching the $1,982.20. Gold prices reached their highest level from May 24, reaching $1,984.19, before falling 1.2% on Tuesday.
Gold with record price
According to CArlo Alberto De Casaexternal analyst of Kinesis Moneyalthough the prospects for the next Fed meeting They have not changed, the latest employment and inflation data suggest that rates could be cut in early 2024, sooner than expected. Furthermore, the markets are almost certain that this rate hike will be the last for a while.
The economists surveyed by Reuters they also anticipated that the July rate hike it will be the last in the current Fed tightening cycle.
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Rising interest rates implies a decrease in the prices of Treasury bonds American and an increase in yields, which makes these investments more attractive compared to goldwhich does not generate interest.
Despite this, Gold’s advance was held back by positive UK inflation news, which contributed to a picture of easing global pressures on prices. As for other precious metals, silver remains unchanged at $25.01 an ounce, the platinum posted a slight gain of 0.2% au$s984.84Meanwhile he palladium experienced a fall 1.3% au$s1,302.54 the ounce, after reaching its highest level since June 26au$s1,325, in the previous session.
Source: Ambito
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