Investors were particularly attentive to the guidance the Fed would provide on interest rates in the coming week.
Gold recovers from three-week lows and awaits the Fed meeting
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Gold experience a significant recovery from three-week lows this Friday. This rally was driven by a slight drop in the value of the dollar following the release of Chinese economic data that exceeded expectations, as well as the strengthening of the euro.
Investors were particularly attentive to the guidance that lThe Federal Reserve would provide about the interest rates in the next week.
The price of gold increases by 0.4% reaching $1,917.49 per ounceafter touching its lowest level since on August 23 in the previous session. US gold futures also experienced an increase of 0.3%, reaching $1,939.
Carlo Alberto De Casaan analyst at Kinesis Money, highlighted: “We are seeing a consolidation of the euro and a slight recovery of the yuan against the US dollar. This has a positive impact on gold, which remains solid above $1,900 per ouncea”. In addition, he noted that this maintenance above $1,900 is an encouraging sign, as it demonstrates the resilience and continued interest of investors in the precious metal.
Looking ahead to the Federal Reserve meeting next week, in which there are expected to be no changes in interest rates, investors continue to evaluate market conditions. On Thursday, U.S. producer prices posted their biggest increase in more than a year in August, and retail sales beat expectations, boosted by rising gasoline prices.
Furthermore, positive economic data from China also supported to other precious metals. The silver rose 2% to $23.09 per ounce, platinum rose 1.3% to $917.68 and palladium rose 1.2% to $1,266.59. These three metals are on track to make weekly gains.
Source: Ambito
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