Rises in Gold Prices

Rises in Gold Prices:

Global gold prices rose for the third consecutive session on Thursday,
as investors await U.S. inflation data due later today for further guidance on the Federal Reserve’s interest rate path.
The weakening dollar made gold more attractive to investors holding other currencies.

 

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Jerome Powell

 

 

 

 

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Investors are awaiting the Consumer Price Index (CPI) report for June, set to be released at 3:30 PM Riyadh time,
as well as the Producer Price Index (PPI) report on Friday.
They anticipate that these data will bolster optimism that the Federal Reserve will be able to cut interest rates this year.
Any unexpected decline in the CPI report could weaken the dollar and push gold prices towards the $2400 level.
Meanwhile, Federal Reserve member Lisa Cook stated that inflation in the United States should continue to decline without a significant increase in the unemployment rate.
Another record high could be achieved this year if any geopolitical shock occurs. Gold is considered a hedge against geopolitical turmoil, and its appeal tends to rise when interest rates are low.

 

 

 

 

 

Jerome Powell

Meanwhile, Federal Reserve Chairman Jerome Powell said on Wednesday
that the central bank will make decisions on interest rates “as and when” they are needed.
He told members of the House of Representatives on Tuesday that “more good data” could bolster the case for a rate cut. Powell indicated that the U.S. economy is on track to achieve a soft landing, stating,
“There is a path to returning to full price stability while maintaining a low unemployment rate,
and we are working hard to stay on that path.
” Traders currently estimate a 46% probability that the Federal Reserve will cut interest rates by two steps by the end of the December meeting, and there is a 73% chance of the first cut in September.
As for gold prices, gold futures prices rose during last Wednesday’s trading,
absorbing the content of Federal Reserve Chairman Jerome Powell’s testimony before the House of Representatives.
At present, gold futures are up 0.23% to $2385 per ounce.
Meanwhile, the dollar index is down about 0.05% to 104.670 points.

 

 

Rises in Gold Prices

 

Bitcoin reaches its previous all-time high again

Bitcoin reaches its previous all-time high again

The cryptocurrency markets have seen a significant recovery in the last few hours,
with Bitcoin once again surpassing the $68,000 level amid general market upswings.

 

 

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Bitcoin

Gold

Swiss National Bank

 

 

 

 

Bitcoin

This increase comes after the Federal Reserve kept its forecasts for cutting interest rates three times this year, despite inflation rates exceeding expectations in January and February of the current year.

Bitcoin’s value reached a daily high of $68,240, increasing by more than 10% in the last 24 hours, but it has now fallen to $67,344, an increase of about 6.7% in the last 24 hours.

At the same time, Ethereum also experienced an increase, being the second-largest cryptocurrency by market value, now registering an increase of about 10% in the last 24 hours, reaching a level of $3,540.

 

 

 

Gold

Gold surges to historical levels after the Federal Reserve’s decisions:

it prices globally saw a record increase during Thursday’s trading, due to the weakening of the US dollar and bond yields.
This increase is attributed to the Federal Reserve’s decision to continue its forecasts for cutting interest rates three times this year.

Interest rate cuts reduce the opportunity cost of investing in gold, which yields no return,
and put pressure on the dollar’s value, making gold more attractive to investors holding other currencies.

In yesterday’s session, the Federal Reserve kept interest rates unchanged,
but monetary policymakers indicated that they expect to cut them by three-quarters of a percentage point by the end of 2024.

Federal Reserve Chair Jerome Powell stated that recent readings of high inflation rates have not affected the core vision of inflation in the United States.
Powell affirmed that monetary policymakers are still determined to cut interest rates before the end of the year,
with expectations for continued economic growth.
Additionally, the central bank raised its forecasts for core inflation to 2.6%, compared with previous expectations of 2.4%,
while keeping its inflation rate forecast for the current year at 2.4%.

 

 

 

 

Swiss National Bank

Swiss National Bank cuts interest rates against expectations:

Following its first meeting in 2024, the monetary policy committee of the Swiss National Bank today decided to surprise the markets by cutting the interest rate to 1.50%,
a decision that diverges from expectations that pointed to maintaining the rate at 1.75%.

 

Short-term interest rates are key factors in measuring the currency level, as traders look to other indicators’ results to predict rate changes in the future.
The Swiss National Bank typically announces targeted interest rates for Swiss Franc deposits, and these rates are determined based on the average price.
The interest decision is made based on the central bank’s policy and outcomes that will be revealed later.

 

It’s worth noting that the US Treasury Department has labeled Vietnam and Switzerland as currency manipulators,
placing China and nine other countries on a watchlist in an annual report aimed at preventing countries
from manipulating their currencies to gain unfair trade advantages.

 

 

Bitcoin reaches its previous all-time high again

 

Oil Continues to Rise Amid Geopolitical Concerns

Oil Continues to Rise Amid Geopolitical Concerns

In early Asian trading on Monday, oil prices increased, reinforcing gains from last week,
with a nearly 4% rise, amid expectations of a supply decline.

 

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Oil

Gold

Dollar

 

 

 

 

 

 

Oil

Brent crude contracts for May delivery rose by three cents to $85.37 a barrel.
West Texas Intermediate crude contracts for April delivery increased by ten cents to $81.14 a barrel.
Geopolitical concerns remain high as the Ukrainian campaign intensifies with drone attacks on Russian oil refineries at the beginning of the week.
In the Middle East, Israeli Prime Minister Benjamin Netanyahu announced on Sunday his intention to continue plans to penetrate Rafah in the southern Gaza Strip,
home to over a million displaced persons.

 

 

 

 

Gold

Gold Falls as Investors Await Federal Reserve Decisions:

Its prices are currently falling during Monday’s trading session, due to the dollar’s stability and investors preparing for a series of monetary decisions by major global central banks, including the Federal Reserve meeting this week.
The US central bank is expected to maintain interest rates at 5.25% – 5.5% at the end of its meeting scheduled for Wednesday.
However, there is a possibility of continued signals for longer-term interest rate hikes due to ongoing consumer and producer inflation.
Traders now anticipate a nearly 56% chance of an interest rate cut in June.
Rising interest rates reduce the attractiveness of holding non-yielding gold.
Last week, data showed a strong increase in US consumer prices in February,
as well as producer prices rising more than expected amid higher costs for goods like gasoline and food.

 

 

 

 

Dollar

The Dollar Stabilizes as Traders Anticipate Japanese Central Bank Decisions:

The dollar stabilized today as traders await central bank meetings around the world this week.
The Bank of Japan is moving towards ending its negative interest rate policy, with attention also on expected interest rate cuts by the US Federal Reserve
In addition to Japan and the United States, central banks in England, Australia, Norway, Switzerland, Mexico, Taiwan, Brazil, and Indonesia will hold their meetings, with most expected to keep interest rates unchanged.
Attention in Asia is focused on the Bank of Japan, where significant wage increases by major companies in Japan have raised expectations of the central bank announcing a new era by ending the negative interest rate policy, which could be announced on Tuesday.
The yen slightly retreated on Monday to 149.13 against the dollar, after reaching a more than week-low of 149.33 earlier in the session.
The currency has seen fluctuations in recent weeks, dropping to 150.88 last month, raising concerns about potential intervention by Japanese authorities.

 

 

Oil Continues to Rise Amid Geopolitical Concerns

Gold prices rise on expectations of U.S. rate cuts

Gold prices rise on expectations of U.S. rate cuts

Bullion nears $2,080 as investors eye Fed easing

 

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Analysis

 

 

 

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Gold prices rose on Wednesday, supported by expectations
that the U.S. Federal Reserve will cut interest rates in 2024.

Gold jumped 0.1% to $2,079.74 an ounce,
its highest level since early December. Gold has risen 14% so far this year
and is on track for its first annual gain in three years.

Investors are expecting the Fed to cut rates in 2024 in an effort to combat slowing inflation.
Lower interest rates lead to lower bond yields,
making gold more attractive to investors seeking a safe haven.

Expectations of rate cuts are expected to continue to support gold prices in the coming months.

 

 

 

 

Analysis

The rise in gold prices is a sign that investors are still seeking safe-haven assets amid the ongoing uncertainty in global markets. Rising inflation and geopolitical risks are driving demand for gold.

Investors are expected to continue to seek safe-haven assets in the coming months,
which could lead to further gains in gold prices.

 

 

Gold prices rise on expectations of U.S. rate cuts

Gold nears new record on expectations of U.S. rate cut

Gold nears new record on expectations of U.S. rate cut

Gold prices rose on the first day of the last week of 2023,
as investors looked to a potential interest rate cut by the U.S. Federal Reserve in 2024,
as well as a weakening U.S. dollar.

 

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Conclusion

 

 

 

 

 

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Gold prices continued to rise on the first day of the last week of 2023, nearing a new record high of $2,072.22, on track to record its first annual gain in three years. The data showing a decline in U.S. inflationary pressures has bolstered expectations of multiple rate cuts in 2024.

A report released last week showed that the core personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose by a very small amount in November, just shy of the central bank’s target of 2%.

Markets now expect a 75% chance of a rate cut by the Federal Reserve by March 2024, which could benefit assets that do not offer yields, such as gold, despite some central bank officials ruling out early easing.

 

 

 

 

Conclusion:

Gold prices rose by 0.6% to $2,064.45 per ounce  after gaining 1.7% last week.
The Bloomberg Dollar Spot Index, which measures the dollar’s strength against a basket of currencies,
fell by 0.1%. Silver and palladium prices rose, while platinum prices remained flat.

 

 

Gold nears new record on expectations of U.S. rate cut

Gold Shines Amid Expectations of US Rate Cut

Gold Shines Amid Expectations of US Rate Cut

Gold prices rose in early trading on Wednesday, extending gains for a third consecutive session,
as expectations grew that the US Federal Reserve (Fed) will cut rates next year.

 

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According to data from City Gold, the price of an ounce of gold in spot trading rose 0.5% to $1,011.50,
while the price of an ounce of gold in futures contracts rose 0.6% to $1,012.70.

 

The gains come as investors await data on US inflation,
which is scheduled to be released later this week.

 

November inflation data came in higher than expected,
leading to expectations that the Fed would raise rates early next year.

 

However, the US central bank signaled last week that the tightening cycle has ended,
suggesting that rates could be cut next year.

 

Atlanta Fed President Raphael Bostic said on Tuesday that there is no “pressing need” to cut rates
at this time given the strength of the economy.

 

Gold is seen as a safe haven for investors amid rising inflation and geopolitical risks.

 

 

Gold Shines Amid Expectations of US Rate Cut

Gold continues to rise on expectations of rate cuts

Gold continues to rise on expectations of rate cuts

Dollar decline, U.S. Treasury bond rise support precious metal

Gold prices rose on Wednesday, hitting their highest level in six months
after comments from Federal Reserve officials boosted bets that
the U.S. central bank could start cutting interest rates next year.

 

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Gold prices

 

 

 

 

 

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The U.S. dollar fell against most major currencies, and U.S. Treasury bond prices rose
after Federal Reserve Governor Christopher Waller said that U.S. monetary policy is working well to bring inflation back to the central bank’s 2% target, suggesting that there may be no need to raise interest rates again.

 

Typically, the impact of lower borrowing costs is negative for non-yielding bullion, but in the current environment, expectations of rate cuts could support gold prices, as investors view the precious metal as a safe haven in the event of an economic recession.

 

 

 

 

 

Gold prices

Gold prices have risen more than 12% since early October, driven by safe-haven buying following the conflict between Israel and Hamas, and investors’ expectations of U.S. rate cuts.

As investors prepare for U.S. inflation data, traders are leaning towards an economic slowdown and monetary easing.

Spot gold rose 0.4% to $2,048.29 an ounce at 9:19 a.m. Singapore time. The Bloomberg Dollar Spot Index fell further after dropping 0.4% in the previous session. Silver, platinum and palladium prices also rose.

 

Gold continues to rise on expectations of rate cuts

Gold Stabilizes with Second Weekly Gains Amid Weakening Dollar

Gold Stabilizes with Second Weekly Gains Amid Weakening Dollar

Gold continues to achieve gains for the second consecutive week, as prices stabilized on Friday, supported by the decline in the US dollar. Reports indicate growing market confidence that the Federal Reserve has concluded its interest rate hikes.

 

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The most important expectations

 

 

 

 

 

 

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At 0205 GMT, gold prices in spot transactions remained at $1992.46 per ounce, marking a 0.7% increase for the week.
Futures contracts for gold showed little change, recording $1993.40.

 

Tim Wotter, senior market analyst at K.C.M. Trade,
noted that “the dominant themes in the financial markets over the past week were declining yields and a weaker US dollar, contributing to the rise in gold prices.”

 

In this context, the dollar index fell by 0.2% against its counterparts,
heading for its second weekly decline, making gold more attractive to holders of other currencies.

 

With the yield on 10-year US Treasury bonds rising to 4.4568%,
markets lowered their expectations for interest rate cuts in 2024.
This followed data showing a larger-than-expected decline in new unemployment benefit claims in the US last week.

 

 

 

 

 

 

The most important expectations

However, strong job data did not change expectations for a slowdown in the US labor market amid rising interest rates. Fiduciary, a C.M.E. Group subsidiary, expects the Federal Reserve to leave interest rates unchanged in December, with a roughly 26% chance of a rate cut in March.

 

A potential interest rate cut is expected to reduce the alternative opportunity cost of holding gold.
Regarding other precious metals, silver rose to $23.69 per ounce,
while palladium increased to $1049.55, and platinum remained at $915.57,
heading for its second consecutive weekly gain.

 

 

Gold Stabilizes with Second Weekly Gains Amid Weakening Dollar

The Gold Prices Drop Below $2000 Due to the Stability of the US Dollar

The Gold Prices Drop Below $2000 Due to the Stability of the US Dollar

After a period of decline in the gold market, prices of this precious metal reached levels below $2000 per ounce on Wednesday, following the stabilization of the US dollar, which had seen a decline in the past few days. This decline coincides with expectations that the US Federal Reserve will halt its monetary tightening policies, mitigating the downward pressure on gold prices.

 

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The most important expectations

 

 

 

 

 

 

 

 

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Gold prices in spot transactions recorded a 0.1% decrease, reaching $1996.79 per ounce,
after reaching its highest levels in three weeks at $2007.29 in the previous session.
Similarly, US gold futures also experienced a 0.1% decline, reaching $1998.80.

 

This comes in the context of the stability of the dollar against other major currencies, after it reached its lowest levels in two and a half months in the previous session.
The decline in the value of the dollar is attributed to the improved purchasing power of holders of other currencies,
making gold less costly for them.

 

During the recent meeting of the US Federal Reserve officials, a commitment to “caution” in adopting interest rate policies was reaffirmed, with rates only being raised in the event of inflation deterioration, according to the meeting minutes held on November 1.

 

 

 

 

 

The most important expectations

Market expectations widely anticipate that the US central bank will leave interest rates unchanged at the December meeting, with a chance of up to 60% of a 25 basis points interest rate cut by May.

 

Real estate sales in the United States hit their lowest levels in over 13 years in October, influenced by the rise in mortgage interest rates over the past two decades and the scarcity of supply in the market, prompting buyers to stay away from the market.

 

US Treasury bond yields for 10-year terms are near their lowest levels in two months, touching them last week.

 

As for other precious metals, silver rose by 0.3% in spot transactions, reaching $23.79 per ounce, while the price of platinum remained stable at $931.34, and palladium fell by 0.6% to $1072.35.

 

 

 

The Gold Prices Drop Below $2000 Due to the Stability of the US Dollar

Unveiling Gold’s Uptick The Factors Behind Its Modest Rise

Unveiling Gold’s Uptick The Factors Behind Its Modest Rise

In the world of precious metals, gold has been making headlines with a modest rise in its prices. This surge in value can be attributed to several key factors, such as a weaker dollar and decreased Treasury yields following a more dovish Federal Reserve stance. However, these price increases are being tempered by a growing appetite for riskier investments among traders and investors. In this article, we’ll delve into the details of what’s driving gold’s ascent, the impact of the Federal Reserve’s decisions, and why gold’s gains are not as substantial as one might expect.

 

Gold Prices Show a Modest Rise Amid Expectations of No Further Fed Rate Hikes

Gold prices are on the upswing, and it’s no coincidence. Let’s uncover the factors contributing to this welcome development.

 

The realm of precious metals is buzzing with excitement as gold prices have seen a modest but notable rise. Investors and experts are closely watching this positive trend, and it’s essential to understand what’s fueling this surge.

 

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The Key Factors Behind Gold’s Recent Rise

The Federal Reserve’s Influence on Gold Prices
Conclusion

 

 

 

 

 

 

The Key Factors Behind Gold’s Recent Rise

Weakened Dollar: A weakened U.S. dollar is often synonymous with higher gold prices. As the dollar loses strength, investors turn to alternative assets, like gold, as a safe haven.

 

Lowered Treasury Yields: The recent reduction in Treasury yields has made holding gold more attractive as the opportunity cost of not investing in interest-bearing assets decreases.

 

Dovish Federal Reserve Stance: The Federal Reserve’s shift towards a more accommodative stance, as reflected in its recent decisions, has bolstered confidence in gold’s prospects.

 

However, it’s crucial to recognize that while gold prices are indeed on the rise, they are not soaring as high as one might expect. This limitation is due to a growing risk appetite among investors, which is redirecting their focus towards other assets, such as stocks.

 

 

 

 

 

The Federal Reserve’s Influence on Gold Prices

The Federal Reserve plays a significant role in shaping the economic landscape, and its recent decisions have had a notable impact on gold prices.

 

The central bank’s decision to maintain interest rates has drawn considerable attention. However, it wasn’t just the decision that sent ripples through the market. Federal Reserve Chair Jerome Powell’s subsequent comments reshaped expectations regarding further interest rate hikes. Powell’s acknowledgment of the tightening financial conditions in recent months reinforced the belief that additional rate hikes were becoming less likely.

 

Traders’ Expectations and Gold’s Advantage

Traders are closely monitoring the situation, and their expectations are pivotal in understanding gold’s trajectory.

 

According to Fed fund futures, traders now perceive an 80% probability of a rate pause in December. Furthermore, there is an expectation that the Federal Reserve will embark on a journey of rate cuts by mid-2024. This expectation shift has tangible consequences, with the dollar’s depreciation and the drop in Treasury yields working in gold’s favor.

 

The Influence of Risk-Driven Assets

While gold is undoubtedly gaining ground, it’s essential to consider the influence of risk-driven assets on its overall performance.

 

Recently, investors have increasingly turned their attention to assets with higher risk profiles, such as stocks. This shift in focus has acted as a mitigating factor in gold’s potential gains. While gold remains a valuable and reliable asset, the allure of potentially higher returns from riskier investments has somewhat tempered its ascent.

 

Gold’s Performance at a Glance

Let’s take a closer look at gold’s recent performance to get a clearer picture of its upward trajectory.

 

At the close of the trading day, spot gold recorded a 0.2% increase, reaching $1,986.07 per ounce. Gold futures set to expire in December showed a 0.3% gain, bringing the price to $1,993.70 per ounce by 00:52 ET (04:52 GMT). These figures are a testament to gold’s resilience and attractiveness in the current financial landscape.

 

Now that we’ve explored the factors behind gold’s recent rise, it’s time to address some common questions and concerns related to this exciting development.

 

Unveiling Gold’s Uptick The Factors Behind Its Modest Rise

 

 

 

 

 

Conclusion

Keeping an Eye on Gold’s Ascent

As gold prices continue their modest ascent amid expectations of no further Fed rate hikes, it’s crucial to remain vigilant. The interplay of a weakened dollar, lowered Treasury yields, and the Federal Reserve’s stance has created a favorable environment for this precious metal. While gold’s gains are restrained by the allure of risk-driven assets, it remains a noteworthy asset for investors to monitor in the days ahead.

 

 

Unveiling Gold’s Uptick The Factors Behind Its Modest Rise