© Reuters.
Investing.com – Gold prices rose during these moments of trading, on Friday, and are preparing for their largest monthly decline since February, as they were hovering around their lowest levels in more than six months due to expectations of higher interest rates for a longer period.
Markets are awaiting the release of the Fed’s preferred US inflation data later today.
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Gold and dollar now
It rose 0.42% to $1,886 an ounce.
It rose by 0.28% to $1,870 per ounce.
On the other hand, it declined by 0.33% to 105.584 points.
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Gold at settlement yesterday
Gold prices fell at the settlement of trading yesterday, Thursday, with anticipation of the release of economic data to anticipate the path of monetary policy, amid growing expectations of monetary tightening by the Federal Reserve.
Upon settlement, gold futures for December delivery fell by 0.65%, or $12.3, to reach $1,878.6 per ounce, the lowest settlement since December 22, 2022.
What does gold need to return above $1,900?
Gold prices are on track for a nearly 4% decline this month and their second straight quarterly decline, with both 10-year yields and the dollar heading for their best quarters in the past four quarters.
Higher interest raises the opportunity cost of holding bullion, which is priced in dollars and yields no interest.
Data on Thursday showed that the US economy maintained a fairly strong pace of growth in the second quarter.
Data from the US Department of Labor revealed that initial unemployment claims increased by 2,000 to 204,000 in the week ending September 23, while it was expected to rise to 215,000.
The US economy grew in the second quarter in line with expectations at 2.1%, supported by increased business investment, consumer spending, and state government spending.
On the other hand, long-term mortgage interest recorded its highest level in 23 years at 7.31% this week, as fears of a US government shutdown reinforced the rise in 10-year Treasury yields, which touched their highest levels since 2007.
Markets are awaiting the release of the Personal Consumption Expenditures Index on Friday, which is the Federal Reserve’s preferred measure of inflation, to predict more about the future of monetary policy in the United States.
Matt Simpson, chief analyst at City Index, said gold would need to see bonds and a weaker dollar to make its way back above $1,900, which “may require a particularly weak set of inflation numbers and a scaling back of the Fed’s hawkish bets, but that now looks unlikely.” ».
other metals
Spot rose 1.2% to $22.88 an ounce, but was also set for its worst month in seven.
Platinum rose 1% to $913.35, and increased 0.7% to $1,280.72.
2023-09-29 06:56:00
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