This is because, according to CME’s FedWatch tool, the probability of a rate cut between now and March amounts to 58%. Lower rates reduce the opportunity cost of holding bullion.
He gold experienced a drop of more than 2% after having reached an all-time high the day beforebut the expectations that the Federal Reserve cutting interest rates at the beginning of next year stopped the decline of the gold metal.
In this context, the spot gold fell 2.3% to $2,022.99 an ounce. The gold futures In the United States they also dropped 2.3%, to $2,041.50.
In the Asian session, the Gold soared to an all-time high of $2,135.4 due to the growing confidence in a rate cut Following the Fed Chairman’s comments on Friday, Jerome Powell.
“Even though we are closer to a Fed turnaround, it may be premature to see these prices hold (…) this market is getting a little tired,” he said. Bart Melekof TD Securities. “We’re going to need more catalysts, and they will come in the form of weak economic data.”
He dollar index It advanced 0.5%, making the bullion more expensive for holders of other currencies. The performance of the US treasury bonds to 10 years it also went up.
Gold: the data analyzed by the market
Depending on the tool FedWatch According to CME, the probability of a rate cut between now and March amounts to 58%. Lower rates reduce the opportunity cost of holding bullion, which does not earn interest.
Operators are now waiting for the release of US nonfarm payrolls data on Fridaywhich could help better gauge the outlook for rates.
In other precious metals, the silver lost 3.7%, to $24.48 per ounce; he palladium fell 3%, to $969.87; and the platinum fell 2.2% to $913.55.
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.
