Gold Closes Higher as U.S. Dollar Weakens: Financial World Update

Gold closes: Gold barely maintains week’s gains as U.S. dollar boosts

Financial World 2023-09-16 04:23:13

According to news from the financial world on September 16, U.S. inflation data is not enough to prompt the Federal Reserve to take more immediate action. At the same time, the recent fall in the U.S. dollar has caused safe-haven assets to rise. Gold closed higher and also recorded a slight increase this week.

Dow Jones Market Data showed that gold futures for December delivery rose $13.40 to close at $1,946.20 an ounce, an increase of 0.7%, with the price of the most active contract rising 0.2% this week. December silver futures rose 39 cents to $23.39 an ounce, or 1.7%, and gained 0.9% this week.

October platinum futures rose $18.40, or 2%, to $929.50 an ounce, up 3.9% for the week, while December palladium futures fell $2.10, or 0.2%, to $1,252.70 an ounce, up 5.1% for the week. December copper futures fell 0.5% to $3.80 a pound, but maintained a weekly gain of 2.3%.

Rupert Rowling, market analyst at Kinesis Money, said that “gold is still trading above $1,900 despite central banks continuing to raise interest rates and expectations that rates will remain high for longer.” “It illustrates how strong the support for safe-haven assets was earlier this year, and market confidence is only slowly creeping back into investor attitudes.”

He said in a market commentary on Friday that the slight rise in gold prices “also benefited from a slight weakening of the U.S. dollar. Since gold prices are usually priced in U.S. dollars, the U.S. dollar and gold prices have an inverse relationship.” Analysts said the U.S. dollar rose to A slight pause on Friday after hitting a six-month high also helped gold prices rise.

On Friday, the ICE U.S. Dollar Index, which measures the greenback’s strength against a basket of currencies, fell 0.2% to $105.245. Gold prices edged higher this week as U.S. consumer and producer price indexes confirmed that inflation continued to accelerate in August, but not enough to worry markets and central bankers.

In addition, in Europe, the European Central Bank raised interest rates again by 25 basis points on Thursday, raising the deposit rate to 4%, suggesting that the interest rate hike may have ended. The U.S. Federal Reserve will announce its next monetary policy decision on Wednesday.

“The hawkish tone from next week’s FOMC meeting could be a catalyst for gold prices to return below $1,900,” said Han Tan, chief market analyst at Exinity Group. “However, if the market takes stock from the FOMC policy statement and / Or extrapolating dovish cues from Fed Chairman Jerome Powell’s press conference, spot gold could create wider spreads above $1,900.”

Warning from the financial community: The content, data and tools in this article do not constitute any investment advice and are for reference only and do not have any guiding role. The stock market is risky, so be cautious when investing!

2023-09-15 20:23:13
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