Although the gold metal is considered a hedge against inflationthe reduction in rates increases the attractiveness of this asset, which does not generate interest.
The price of gold continues to rise this Thursday, driven by the decrease in the performance of the Treasury bond American and the signs that the Federal Reserve could have concluded its cycle of increases in interest rates.
At this time, spot gold registers an increase of 0.3%, reaching US$1,965.08 per ounce, while gold futures gold In the United States they show an increase of 0.2%, standing at US$1,967.70.
Ole Hansenof Saxo Bank, said: “Gold will maintain its recent strong gains as long as the price remains above $1,930. The prospects for lower rates and continued demand from central banks should ensure enough support to withstand any near-term strength in economic data.”
Gold: the data that the market expects
Recent economic data shows clear signs of easing inflationary pressures in the United States. Producer prices fell in October, while retail sales fell for the first time in seven months. Besidesconsumer prices remained stable last monthwhich has led investors to bet that the Fed has ended its rate hikes.
Although Gold is considered a hedge against inflationthe reduction in rates increases the attractiveness of this asset, which does not generate interest.
Gold is also supported by the dollar index, which remains stable against a basket of six major currencies, near the more than two-month low of 103.98 units. At the same time, the benchmark 10-year bond yield has fallen to 4.5%.
Elsewhere in precious metals, spot silver rose 0.9% to $23.65 an ounce after hitting a nearly two-month high earlier in the session. Platinum shows an improvement of 0.2%, standing at $897.71, while palladium falls 0.6%, reaching $1,025.80.
Source: Ambito
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