© Reuters. Gold is rising strongly and is close to breaking its all-time highs!
Arabictrader.com – It rose strongly during Wednesday’s trading and approached its highest levels ever near the level of $20,148 per ounce, benefiting from the weakness of the US dollar due to increasing bets on not raising US interest rates and the end of the US monetary tightening cycle, as an ounce succeeded in adding more than $15 per ounce. currently.
During Wednesday’s trading, gold futures contracts for February delivery rose by about $22.25, or by 1.08%, to reach $2,082, and spot contracts also rose by about $13 per ounce, or by 0.62%, and are currently trading near the level of $2,080 per ounce.
Gold prices benefited during trading today due to the weakness of the US dollar in light of the inverse relationship between the two parties (gold usually rises as soon as the dollar falls, while gold falls as soon as the dollar rises, especially since gold is denominated in the US dollar), as the US dollar (which measures the performance of the US currency) decreased by 0.47% and settled near the level of 100.99 points, which had a positive impact on gold’s movements.
The US dollar was clearly damaged as a result of several factors, most notably negative economic data, which strengthened market expectations regarding the end of the US monetary tightening cycle, as data issued by the Federal Reserve Bank for the state of Richmond, today, Wednesday, showed negative data for the Richmond manufacturing index in the United States during the month of December. This month, for the second month in a row, official data revealed a contraction in the index by 11 points, which is worse than market expectations that expected the index to contract by only 4 points. The previous reading of the Richmond manufacturing index had recorded a contraction of about 5 points last November.
At the same time, gold rose clearly, benefiting from the weakness of US bond yields at various terms, which enhanced the demand for gold as a better haven. In this context, the yield decreased by 1.56% and recorded about 3.825%. Likewise, the 20-year US bond yield declined by 1.56%. 1.27% and settled near 4.147%. At the same time, the 30-year US bond yield fell by 1.28% and settled near 3.991%, and this decline in US bond yields was negatively reflected in dollar trading.
Among other metal prices, spot contract prices rose by 0.55% to $24.3615, while; Prices for delivery next March fell by approximately 0.79% to record $1,180.03, and contract prices rose by 1.40% and recorded about $1,009.00.
2023-12-27 18:21:00
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