Gold prices rose to their highest level in a week on Tuesday, supported by a decline in the dollar, as the market awaits comments from Federal Reserve officials for signs on the path of interest rates.
Gold price today
The price of gold in spot transactions rose 0.4% to $2,623.54 an ounce, the highest level since November 12. Prices went up 2% yesterday, Monday.
US gold futures rose 0.5% to $2,627.60 an ounce.
The U.S. dollar declined as profit-taking began after the dramatic surge it achieved last week. A weak dollar makes gold cheaper for buyers holding other currencies.
“The latest market moves are largely technical, influenced by the record buying of the US dollar,” said Kyle Rodda, financial markets analyst at Capital.com.
Recent strong economic data has raised concerns about whether the US central bank will continue to cut interest rates after cuts of 75 basis points since September. Several bank officials are scheduled to comment this week.
Rodda said that the movement of the gold price will reflect any change in expectations regarding the bank’s meeting scheduled for December, adding that statements or comments from officials about it would be relevant.
Traders currently see a 58.8% chance of a 25 basis point cut in interest rates in December compared to a 41.2% chance of keeping interest rates unchanged.
Non-yielding assets such as gold thrive in an environment of low interest rates and geopolitical uncertainty.
Prices of precious metals
As for other precious metals, silver in spot transactions rose 0.5% to a one-week high of $31.32 an ounce. Platinum increased 0.3% to $969.80.
The price of palladium settled at $1,005.20 after rising more than 5% yesterday, Monday.
2024-11-19 09:57:00
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Dollar has also led to increased demand for other precious metals like silver and platinum. Similar to gold, these metals become more attractive when the dollar depreciates, as they are priced in dollars. Additionally, silver and platinum have industrial applications that contribute to their demand, and any optimism about economic recovery can spur investment in these metals as well.
Section 1: Gold Prices and Inflation Expectations
Interviewer: Welcome to World Today News, I am pleased to have two esteemed guests with us today. Let’s introduce them. Guest 1, you’ve been trading gold for years, and Guest 2, you’re a professor of economics with a focus on inflation. Thank you both for being here.
Guest 1: Thank you for having me.
Guest 2: It’s my pleasure.
Interviewer: The article discusses the recent rise in gold prices and the impact of interest rates on these movements. Guest 1, can you explain why gold prices have risen in the past week?
Guest 1: Sure, the fall in the dollar has been a significant factor driving gold prices higher. The yellow metal’s value is generally inversely related to the strength of the dollar, so when the dollar weakens, gold becomes more attractive to investors holding other currencies. Additionally, there are concerns about the path of interest rates, and recent strong economic data has raised expectations for a less aggressive rate cut by the Federal Reserve in December. Investors may be turning to gold as an alternative asset class that offers some inflation protection.
Interviewer: That’s interesting. Guest 2, as an economist, how do you view this relationship between gold prices and inflation expectations?
Guest 2: Well, historically, gold has been considered a hedge against inflation. When inflation is high or expected to rise, demand for gold tends to increase, driving up its price. However, it’s important to note that gold doesn’t necessarily keep pace with inflation, and its performance can be volatile. Right now, we’re seeing a bit of a confluence of factors driving gold prices, including concerns about the global economy, geopolitical tensions, and investors seeking safe-haven assets.
Section 2: Precious Metals Markets and US Dollar Movements
Interviewer: Turning our attention to precious metals markets, we see that not just gold but also silver and platinum have been on the rise. Guest 1, can you provide some insight?
Guest 1: Absolutely. The weak US
