Gold futures prices fall below $2,050 as the dollar strengthens and bond yields surge to put pressure on the market.
InfoQuest – Gold futures prices fell below the 2,050 level, pressured by the strengthening of the dollar. and the rebound in US government bond yields.
At 7:47 p.m. Thai time, gold contracts on the COMEX (Commodity Exchange) market will be delivered in February. minus $3.40 or 0.17% to $2,046.60/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.
Investors will keep an eye on non-agricultural employment figures tonight. While analysts predict that Non-agricultural employment increased by only 163,000 jobs in December. After adding 199,000 jobs in November Moreover, the unemployment rate is expected to increase to 3.8% in December from 3.7% in November.
In addition, gold prices were affected by the statement of Mr. Thomas Barkin, President of the Federal Reserve Bank (Fed), Richmond Branch, and the release of the minutes of the Federal Reserve’s (FOMC) monetary policy meeting on December 12-13. Makes investors lose weight on predictions that The Fed will begin cutting interest rates as early as March 2024.
Mr. Barkin has signaled that he will continue to raise interest rates. Even though inflation has slowed, he said there is still a risk that the Fed’s mission to stem inflation may not be over.
“Long-term interest rates have fallen recently. and will stimulate demand in the real estate sector which is sensitive to interest rates Strong demand will not solve the problem of inflation that is above target. This makes further interest rate increases still an option for the Fed,” Barkin said.
Minutes from the FOMC meeting on December 12-13 indicate that there is a possibility that the Fed will cut the policy interest rate in 2024, but no clear timeframe for such rate cuts was revealed.
At the FOMC meeting in December, the meeting unanimously resolved to hold the policy interest rate at the level of 5.25-5.50% and the Fed directors predicted that There will be a total policy rate cut of 0.75% by the end of 2024.
However, minutes of the meeting indicate that There is still a great deal of uncertainty as to whether How will the Fed cut the policy interest rate? And will there really be a reduction in the policy interest rate?
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2024-01-05 19:41:12
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