Market attention is now focused on the US nonfarm payrolls report, due out on Friday, for new clues on the direction of interest rates from the Federal Reserve.
Gold, used as a haven against political and economic uncertainty, crosses the crucial $2,000 per ounce mark this week
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Prices of gold are seeing an increase today, supported by a weakening of the dollar and a decrease in Treasury bond yields. This trend is due to the growing perception that the US Federal Reserve may have concluded its interest rate hike cycleas it left rates unchanged at its last meeting.
Spot gold registers an increase of 0.3% to 1,987.90 dollars per ouncewhile US gold futures rose 0.5%, reaching $1,996.40.
According to Carlo Alberto De Casa, market analyst at Kinesis Money, gold prices need to consolidate a bit before continuing their rise, as the long-term outlook remains favorable.
Gold and the impact of the Fed
The Federal Reserve is keeping rates unchanged today, in line with analyst expectations, as it assesses whether financial conditions can be tight enough to control inflation. According to CME Group’s FedWatch tool, traders rate the likelihood of the Federal Reserve taking another pause in December at 72%.
As a reply, dollar index declines 0.5%, making gold more affordable for investors with other currencieswhile US 10-year Treasury yields also fall to more than two-week lows.
Market attention is now focused on the US nonfarm payrolls report, due out on Friday, for new clues on the direction of interest rates from the Federal Reserve.
Gold, used as a haven from political and economic uncertainty, crossed the crucial $2,000 per ounce mark this week, as investors flock to the metal amid growing unrest in the Middle East.
As for other precious metals, Spot silver rises 0.3% to $23.04 per ounceplatinum registers an increase of 1% to $929.53 and palladium remains stable at $1,102.56.
Source: Ambito
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