Tag Archives: Gold Prices Rise

Rise in Gold Prices

Gold Prices Rise: Global gold prices rose to over $2,400 per ounce during Wednesday trading.
This increase came just hours before the U.S. Federal Reserve’s (Fed) decision on interest rates was announced.

 

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Rise in Gold Prices
Important Decisions at Today’s Fed Meeting

Bank of Japan Raises Interest Rates

 

 

 

 

 

Rise in Gold Prices

Global gold prices rose to over $2,400 per ounce during Wednesday’s trading.
This rise occurred just hours before the U.S. Federal Reserve’s decision on interest rates,
and the daily drop to the $2,400 level had a counteracting effect. 

Additionally, slow global economic growth forecasts and the U.S. dollar’s drop from its three-week high supported gold prices.
Despite this, optimistic investors might hold back from making strong bets,
preferring to wait for more signals regarding the Fed’s path on lowering interest rates.
Therefore, the focus will remain on the outcome of the Federal Open Market Committee (FOMC) meeting,
with the interest rate decision expected to be announced later today.

 

Important Decisions at Today’s Fed Meeting

Federal Reserve officials are preparing to lower borrowing costs in the coming months.
Chairman Jerome Powell may hint at this move
at the end of today’s meeting amid rising risks to the labor market.

Fed Governors are expected to keep interest rates unchanged after two Tuesday and Wednesday meetings.
Rates will remain at their highest level in two decades. However, investors expect the Fed to lower interest rates in September.

Recent data has been encouraging, showing moderate price increases and strong economic growth.
However, the Fed wants more confirmation that inflation will continue to decline towards its 2% target. 

The drop in price pressures and a rise in unemployment have balanced the Fed’s dual
mandate of maximum employment and price stability.
Officials aim to tame inflation but do not want to
cause undue harm to the labor market by keeping interest rates high for too long.

 

 

 

Bank of Japan Raises Interest Rates:

After its July monetary policy meeting, the Bank of Japan’s Monetary Policy Committee
raised the target for short-term interest rates by 15 basis points,
from the 0% – 0.1% range to the 0.15% – 0.25% range.

The Bank of Japan’s decision was contrary to the expectations
of many experts but aligned with the broader market expectations.
The market had priced at a more than 65% chance of a rate hike,
Experts mainly predicted that the Bank of Japan would keep the target interest rate range unchanged at this meeting.

 

Gold Prices Rise

Gold prices rise as Middle East tensions continue

Gold prices rise as Middle East tensions continue: Gold prices rose on Thursday,
supported by a weak dollar and escalating tensions in the Middle East,
while investors await the release of more US economic data that may provide
clues about the Federal Reserve’s steps on interest rates.

 

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US Federal Reserve

Markets

Gold rise

 

US Federal Reserve members have no certainty when they will first cut interest rates

The monetary policy minutes issued during transactions on Wednesday, February 21,
clarified the opinions of members of the US Federal Council,
as the statement indicated that the recent figures presented by the US economy
do not put them in a position of certainty to reduce interest rates on a specific date,
indicating the necessity of waiting for a further strong decline in inflation rates around the 2% target.
It was also noted that unemployment is still low and consumer prices are showing positive and improving,
which puts them in fear of an early interest rate cut to avoid potentially serious damage.
On the other hand, investors continue to bet on the possibility of a cut during the May meeting of this year.

 

Markets are looking forward to personal consumption expenditure data

During next week’s trading, we are looking forward to data
that the US Federal Reserve is looking at to assess the US inflation situation,
and according to it, the date for reducing US interest rates may be determined,
which traders are betting on for a reduction during next May.
Annual core personal consumption expenditures may have reached 2.9% in the previous reading,
indicating inflation’s response to the tightening program that The bank follows it.
Will inflation decline further so that the Fed can reduce it next May,
which may be priced negatively on the dollar and vice versa if it rises above 2.9%? 

We may witness more clear positivity in the dollar index at that time.

 

Gold rises due to continuing Middle East tensions

Gold prices rose on Thursday, supported by a weak dollar and escalating tensions in the Middle East,
while investors awaited the release of more US economic data that

may provide clues about the Federal Reserve’s steps on interest rates.

The dollar index continued to record losses for the fourth day in a row,
falling by 0.3%, which increased the attractiveness of the yellow metal
denominated in the US currency for buyers abroad.

The intensity of the conflict in the Middle East escalated after Israel escalated its attacks
on the city of Rafah in the southern Gaza Strip.

Regarding other precious metals, the price of platinum rose by 1.2%

in spot contracts to $893.45 per ounce, the price of palladium increased by 1.7% to $965.25,
while silver prices rose by 1% to $23.08 per ounce.

Gold Prices Rise and Oil continues to rise

Gold Prices Rise and Oil continues to rise: Gold prices have risen despite the increase in the value of the dollar.
Meanwhile, the value of the Japanese yen has declined,
and oil continues to rise due to ongoing tensions in the Middle East.

 

Topics

Gold prices rise ahead of Federal Reserve meeting tomorrow

Yen falls after rise in US bond yields

Oil continues to rise due to ongoing tensions in the Middle East

 

 

 

Gold prices rise ahead of Federal Reserve meeting tomorrow:

Gold prices rose during Tuesday’s trading session,
despite the increase in the value of the dollar and Treasury bond yields.
This improvement comes amid investors’ anticipation
of the minutes from the recent meeting of the Federal Reserve,
as they seek more information about the timing of interest rate cuts.

In another context, the dollar index recorded a 0.1% increase,
and yields on 10-year US Treasury bonds rose to nearly 4%.
This makes gold, which is priced in US dollars, less attractive to foreign investors.

With a lack of market-affecting news, volatility will be limited across all markets.
It is unlikely that the minutes of the Federal Open Market Committee meeting
will have a significant impact, as Federal Reserve members have clearly expressed their positions.
Since the meeting took place before the recent inflation announcements,
technical factors will be the main driver of gold price movements soon.

The minutes of the Federal Reserve’s monetary policy meeting
for January is expected to be released on Wednesday.

 

 

 

Yen falls after a rise in US bond yields

Asian markets witnessed a decline in the value of the Japanese yen
on Tuesday against major and secondary currencies.
The yen resumed its losses against the US dollar,
falling again below the 150 yen per dollar level, due to the current rise in yields on 10-year US Treasury bonds.

This decline comes despite statements from the Japanese finance minister
regarding intensified monitoring of local currency movements in the foreign exchange market,
as a last-ditch attempt to support the yen amid sharp declines.

The exchange rate of the dollar against the Japanese yen rose by 0.15% to reach 150.37 yen,
compared to the daily opening rate of 150.11 yen, and recorded a low of 150.07 yen.

In the previous session, the Japanese yen gained 0.1% against the US dollar,
after falling by 0.2% in the previous session and approaching a three-month low of 150.88 yen per dollar.

 

Oil continues to rise due to ongoing tensions in the Middle East

Oil prices saw little change in early Asian trading on Tuesday,
remaining near their highest levels in three weeks thanks to escalating tensions in the Middle East and increased Chinese demand.

Brent crude futures fell eight cents to $83.48 a barrel,
while US West Texas Intermediate crude for April delivery fell ten cents to $78.36 a barrel.

West Texas Intermediate crude for March delivery rose 26 cents to $79.45 a barrel,
as traders expected this contract to expire later in the day.

The Houthis continued their attacks on shipping lanes in the Red Sea and the Bab el-Mandeb Strait,
with at least four ships targeted by drone strikes and missiles since Friday.
The Houthis reported that one of these ships was at risk of sinking in the Gulf of Aden,
increasing the risks associated with their campaign to disrupt global shipping in solidarity with the Palestinians in Gaza.

 

Gold Prices Rise and Oil continues to rise