Gold prices rose about $7 an ounce, during today’s trading, Thursday, January 19, 2023, supported by the decline in the US currency.
This comes as investors assess the chances of the US Federal Reserve slowing down the pace of interest rate hikes.
Gold prices today
By 08:11 am GMT (11:11 am Mecca time), the price of gold futures contracts – February delivery 2023 – increased by 0.36%, equivalent to $ 6.90, to reach $ 1913.90 an ounce.
She was gold prices Yesterday, Wednesday, January 18, it ended its trading down for the second consecutive session, after the release of economic data in the United States.
Prompt delivery price also rose tofor yellow metal By 0.62%, to record $1915.89 an ounce.
On the other hand, the price of futures contracts declined for silver March delivery (2023)- by 0.11%, recording $23.62 an ounce.
price rose Platinum Spot by about 0.46%, to reach $ 1046.57 an ounce, and the price of palladium Spot by 0.07%, at $1,723.71 an ounce.
At the same time, the index declined dollar Which monitors the performance of the US currency against 6 major currencies, about 0.14% to 102.22 points.
US interest rates
A few officials pointed out Federal ReserveYesterday, Wednesday, they indicated that they would go ahead with raising interest rates.
Philadelphia Fed President Patrick Harker and Dallas Fed President Lori Logan said they support a slower pace of tightening.
Traders are mostly pricing in a 25 basis point rate hike at the Fed meeting from January 31st to February 1st.
Last year, the US central bank slowed the pace of its increases to 50 basis points in December after 4 consecutive increases of 75 basis points.
conditions of the gold market
Senior Market Analyst at City Index, Matt Simpson, said that markets are still anticipating a 25 basis point hike in February and rate cuts starting in September.
Lower interest rates tend to enhance the attractiveness of bullion; Because it reduces the opportunity cost of holding the non-yielding asset.
Simpson added, “If gold prices can hold above $1,895, prices will stabilize in the range of $1,900 to $1,920, while a break below $1,895 indicates a bounce from its uptrend, before a break above $1,930,” Simpson added. Reuters.
Producer price data
Data on Wednesday showed US producer prices fell more than expected in December; providing further evidence of declining inflation, while retail sales fell by the most in a year; This puts consumer spending and the general economy on a weaker growth path heading into 2023.
Investors are also awaiting the weekly jobless claims data in the US, which is scheduled to be released at 01:30 PM GMT (04:30 PM Mecca time).
The China Gold Association said that China’s gold production, the world’s largest consumer, rose 13.09% year-on-year to 372,048 tons in 2022.
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