The dollar is headed for its second weekly drop, which makes the acquisition of the gold metal cheaper for holders of other currencies.
Gold continues to be a hedge against inflation and declining interest rates increase the attraction for bullion, which does not earn interest.
Pexels
The market of gold remains robust this Friday, projecting a second consecutive week of gains, driven by the increase in analyst bets on the Federal Reserve of the US, possibly concluding its increases in interest rates, which causes a fall dollar.
Spot gold shows an increase of 0.1%, reaching $1,994.09 per ounce, registering an increase of 0.7% so far this week. Meanwhile, its gold futures The US dollar remains stable around $1,994.80.
Lukman Otunugasenior analyst at FXTM, comments: “Gold is on a wait-and-see basis as investors await additional signals on the outlook for the Federal Reserve’s monetary policy. It has been trading in a range for the past few weeks, with ugreat attention paid to the psychological barrier of the $2,000.”
Gold vs. dollar: the market’s view
The dollar index is heading for its second weekly decline, making the acquisition of gold cheaper for holders of other currencies.
Despite stronger-than-expected jobs data, perception persists that the labor market in the United States is slowing in an environment of higher interest rates.
The recent minutes of the Fed They point to “cautious” action by the central bank, with consensus on maintaining rates at their current levels.
According to the CME’s FedWatch tool, traders predict that the Federal Reserve will keep rates unchanged in Decemberand the possibility of a rate cut in March stands at approximately 26%.
Gold remains a hedge against inflation and decreasing interest rates increases the attraction for bullion, which does not generate interest.
As for other precious metals, the silver Spot rose 0.1% to $23.69 an ounce, while palladium gained 0.5% to $919.94. The platinum rose 1% to $1,056.21, heading for its second consecutive week of gains.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
