Islam Saeed wrote Thursday, October 5, 2023 02:15 PM
Gold continues to try to achieve a positive close, but it has failed so far, recording 8 consecutive sessions of decline, and even with the decline in dollar levels and government bond yields, it has not been able to form a price bottom to reflect its upward movement.
Trades Instant gold At the time of writing the technical report, Gold Billion is at the level of $1821 per ounce, after it fell by 0.1% yesterday, while the level of $1815 per ounce that was recorded on Tuesday remains the lowest level in 7 months.
Since the beginning of the week, gold has declined by 1.5%, losing $28, on its way to recording a decline for the second week in a row. This comes after a 4% decline over the past week, which is the largest weekly decline in almost two years, making gold record its longest losing streak in 7 years.
Yesterday, gold had an opportunity to achieve stability in the price and form a price bottom to return to the rise, as the US private sector jobs data for the month of September was issued at less than expected at 89 thousand compared to the previous reading of 180 thousand, and the reading of the Institute for Service Supply index came to show a decline in growth. The services sector in the United States during the month of September rose to 53.6 from the previous reading of 54.5.
Weak American data contributed to a decline in dollar levels yesterday, as the dollar index, which measures its performance against a basket of 6 major currencies, declined yesterday by 0.3%, declining from the highest level in 7 months recorded this week at the level of 107.03.
According to the Gold Billion report, US 10-year bond yields, which lead the bond market, fell by 1.3%, after recording a new highest level in 16 years at 4.884%.
This was supposed to contribute to the recovery of gold prices, but the pressure of selling operations pushed the price to decline again, so that the basic movement of gold, which may affect its levels during the coming period, remains dependent on the data of the American jobs report that will be released tomorrow.
Speculation on US interest rates currently indicates a 74.9% probability that the Federal Reserve will hold rates during its meeting next November, in addition to another 62.8% possibility that it will also hold rates at its December meeting.
Despite expectations that interest rates will not be raised again until the end of the year, gold remains under significant negative pressure due to the Federal Reserve’s determination to keep interest rates at their highest levels for a longer period of time, and to reduce the chances of reducing interest rates during the next year from 4 times to 2 times, which is Which reflects negatively on the performance of the precious metal.
2023-10-05 11:15:00
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