Gold futures prices fall close to $2,020 as dollar strengthens, bond yields surge to hit the market
InfoQuest – Gold futures prices dropped to near the $2,020 level today. Pressed by the strengthening of the dollar. and the rebound in US government bond yields. After the United States revealed strong retail sales This will be a factor supporting the US Federal Reserve (Fed) to hold interest rates at a high level for longer than expected.
At 10:04 p.m. Thai time, gold contracts on the COMEX (Commodity Exchange) market will be delivered in February. minus 9.40 or 0.46% to $2,020.80/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.
In addition, gold prices were affected by investors losing weight on predictions that The US Federal Reserve (Fed) will begin cutting interest rates as early as March.
CME Group’s latest FedWatch Tool indicates that investors give 57.6% weight to the Fed to cut interest rates by 0.25% to 5.00-5.25% at its March 19-20 meeting, after giving 63.1% weight yesterday. this
Moreover, investors weigh 40.9% that the Fed will maintain interest rates at 5.25-5.50% at its March 19-20 meeting, after giving 34.9% weight yesterday.
The US Department of Commerce revealed that Retail sales rose 0.6% month-on-month in December. This was higher than analysts’ expectations of 0.4% after rising 0.3% in November.
compared yearly Retail sales surge 5.6% in December.
If excluding sales of automobiles and gasoline Retail sales rose 0.6% in December.
Investors will be watching New York Fed President John Williams’ statement today for signs of the Fed’s interest rate direction. This is before the Fed begins its Blackout Period at the end of this week.
The Fed will begin entering the Blackout Period on January 20, before the Fed holds its monetary policy meeting (FOMC) on January 30-31.
Federal Reserve regulations prohibit Fed officials from commenting or giving interviews during the Blackout Period regarding monetary policy. It begins on the second Saturday before the FOMC meeting and ends on the Thursday after the FOMC meeting, to prevent the public from interpreting it as an indication of the Fed’s interest rate action at the upcoming monetary policy meeting. to
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2024-01-17 19:57:46
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