The fall of the dollar globally, as it makes holding gold cheaper for investors who manage other currencies, further raising demand.
He gold experiences a notable rebound this Monday, reaching its highest point in more than six months. This rise is attributed to the sustained weakness of the dollar and the growing perception that interest rate increases in the United States could come to an end, driving demand for this precious metal. This bullish trend is especially evident in the face of technical signals that reinforce confidence in its value.
Thus, spot gold registered an increase of 0.6%, standing at $2,012.92 per ounce, after having reached its highest point since May 16, reaching $2,017.82. For their part, gold futures in the United States tThey also show an increase of 0.5%trading at $2,013.80.
The dollar’s decline by 0.1% against a basket of six major currencies is contributing to this trend, placing it near the more than two-month low recorded last week. This depreciation is making the price of gold cheaper for investors who deal with other currencies, further increasing demand.
Gold: the data observed by the market
Craig Erlam, market analyst at OANDA, explains that this move is considered “purely technical” and is supported by inflation data and the recent US jobs report.
Gold prices remain well above their 50-, 100-, and 200-day moving averages, coming within just $60 of the all-time high reached in August 2020, at $2,072.49.
Investors’ attention is now focused on the publication, on Wednesday, from revised US GDP figures for the third quarterand a day later, in the inflation indicator preferred by the Federal Reserve.
As for other precious metals, spot silver rose 1.7% to $24.72 per ounce; platinum registered an increase of 0.1%, trading at $931.53; and palladium shows an improvement of 0.5%, reaching $1,074.41.
Source: Ambito
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