gold futuresPrices fell on Wednesday (24th) as data showed strong U.S. business activity, but a weaker dollar limited losses. At the same time, investors are looking forward to more economic indicators to assess the timing of the first interest rate cut by the Federal Reserve (Fed).
- New Yorkgold futuresfell 0.48% to close at $2,016 per ounce
- goldThe spot price fell 0.6% to US$2,016.04 per ounce.
Daniel Ghali, commodities strategist at TD Securities, said, “goldPrices are unaffected by hawkish repricing in the interest rate market, as signs suggest that even if the market expects the Fed to begin a rate-cutting cycle immediately, investor sentimentgoldPositions are always insufficient. “
U.S. business activity picked up in January and inflation appeared to weaken, an S&P Global survey showed.
The sharp decline in the U.S. economy and resistance from some Fed officials have led some investors to reconsider their bets on the speed of the Fed’s interest rate cuts this year.
According to CME Group’s FedWatch tool, the Fed is expected to keep interest rates unchanged at its January 30-31 policy meeting and delay the time frame for its first rate cut.
The dollar fell 0.5% against other currencies, reducing purchases by overseas buyersgoldopportunity cost.Meanwhile the U.S. benchmark 10-Year Treasury Bond YieldAlso dropped slightly. These are beneficial to gold prices, thus limiting gold price losses on Wednesday.Cutting interest rates will also reduce investmentgoldThe opportunity cost is high, so delaying interest rate cuts is not good for gold prices.
Ghali added that China is working on a more comprehensive plan to curb the widespread pessimism that has plagued its markets for months, which has weighed on the dollar.
The People’s Bank of China plans to relax monetary policy to support the economy and will lower the reserve requirement ratio by 0.5 percentage points on February 5. Pan Gongsheng, president of the People’s Bank of China, said that this move should inject 1 trillion yuan into the market.RMB ($139 billion) liquidity.
Investors are currently focused on fourth-quarter GDP estimates released on Thursday and personal consumption expenditures data on Friday.
Other metal trading
- Spot goodssilverrose 1.7% to $22.81 an ounce.
- stipendrose 0.8% to $955.87 an ounce.
- Platinum rose 0.5% to $904.87 an ounce.
2024-01-24 22:47:56
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