Investing.com – Gold prices fell during these moments of trading, today, Friday, but are heading for their largest weekly gain since April, after rising near the highest level in one month, as the markets reduced expectations of an increase in US interest rates, which pushed the dollar to decline. its lowest in more than a year.
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And the dollar now
It fell by 0.19% to $1,960 an ounce.
While spot contracts fell by 0.23% to 1956 dollars an ounce.
On the other hand, it rose by 0.14% to 99,595 points.
gold when settling yesterday
Gold prices rose at the settlement of transactions, yesterday, Thursday, after data confirmed the slowdown in inflationary pressures in the United States.
The losses of the dollar index continued and returns declined with the slowdown in inflationary pressures, which reinforced the possibility that the Federal Reserve would suffice with raising interest rates once this year.
Gold futures for August delivery rose by 0.1%, or $2.1, to reach $1,963.8 an ounce, after touching $1,956.60 during the session.
gold to where?
“Gold has some room to run from these levels,” said Matt Simpson, senior market analyst at City Index, adding that the next key levels could be between $1985 and $2000.
Data on Thursday showed that US producer prices rose less than expected in June, providing more evidence that the economy is entering a phase of low inflation.
The data revealed that the producer price index rose by 0.1% on a monthly basis in June, while it was expected to rise by 0.2%, after falling by 0.4% in May.
Meanwhile, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating that the US labor market remains tight.
The data revealed that initial jobless claims fell by 12,000 to 237,000 during the week ending July 8, when it was expected to reach 250,000.
Markets mostly priced in another rate hike from the Federal Open Market Committee at its meeting on July 25-26, but expectations for another hike have been dampened.
However, if the Fed signals an increase in interest rates, “it could cause some tension (among gold investors),” according to Simpson.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
Tim Waterer, Senior Market Analyst at KCM Trade said: “The near-term movement of gold seems to have turned bullish. There is now some support around $1940, while resistance is in the $1970-1975 area.
According to the Fed’s Interest Tracker on Investing, markets currently favor a roughly 92.4% chance of a 25bps rate hike at the upcoming July meeting, with expectations growing to range from 55% to 80% for a policy range to be stabilized thereafter, at 5.25% and 5.5%. 50% during the remaining three meetings this year.
2023-07-14 06:58:00
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