Gold futures price falls below $2,040 as dollar strengthens, bond yields surge and pound the market
InfoQuest – Gold futures prices fell below $2,040 today. Pressed by the strengthening of the dollar. and the rebound in US government bond yields.
At 8:07 p.m. Thai time, gold contracts on the COMEX (Commodity Exchange) market will be delivered in April. minus 12.00 or 0.58% to $2,039.70/ounce.
A stronger dollar reduces the attractiveness of gold. By making gold contracts more expensive for holders of other currencies Meanwhile, a rebound in US government bond yields will increase the opportunity cost of holding gold. This is because gold is an asset that has no return in the form of interest.
The market is keeping an eye on the number of weekly jobless claims today. Including the Consumer Price Index (CPI) next week.
Investors also focused on statements from Federal Reserve (Fed) officials to look for signs indicating the direction of US interest rates. Several Fed officials have signaled that the Fed will not cut interest rates until it is confident that US inflation is slowing towards the Fed’s target of 2%.
CME Group’s latest FedWatch Tool indicates that investors expect the Fed to maintain interest rates at 5.25-5.50% at its March meeting. Before cutting interest rates by 0.25% to 5.00-5.25% at the May meeting.
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2024-02-08 19:58:00
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