Bisnis.comJAKARTA — Not at all has the opportunity to strengthen in today’s trading, Wednesday (11/15/2023) after rising to US$16.79 in yesterday’s trading, stung by weaker-than-expected US inflation data, thus triggering more speculation that the Federal Reserve may not raise interest rates.
At the close of trading Tuesday (11/14/2023), the price of gold (XAUUSD) rose US$ 16.79 to US$ 1,962.96 per troy ounce. This sharp increase occurred after the release of inflation data (consumer price index/CPI) which again showed slowing growth.
The US Department of Labor last Tuesday reported that the CPI for the October period grew 3.2% year-on-year (YoY), lower than the previous month’s 3.7% YoY, and the forecast at Trading Central was 3.3% YoY.
Then the core CPI, which does not include the energy and food sectors in the calculation, grew 4% YoY, in line with Trading Central’s forecast but lower than the previous month’s 4.1% YoY.
The Monex Investindo Futures Research Team said that this data made market players confident that the US central bank (The Fed) will not raise interest rates next month.
Even if you look at the FedWatch tool, there is now a 2.4% probability that the Fed will cut interest rates by 25 basis points in December, while the probability of interest rates being maintained is 97.6%. This means that currently there are no market players who see interest rates going up again.
“This is a positive sentiment for gold and will still be felt in the Asian trading session Wednesday (15/10/2023), said Monex in its daily research.
Meanwhile, Daniel Ghali, commodity strategist at TD Securities, said that the CPI data, which was much weaker than expected, would be enough to support precious metals. “We expect a significant decline in data during the fourth quarter, which will weaken the dollar and support gold,” Ghali said, as quoted by Reuters.
“Over the next six months, we estimate the price of gold will rise to US$2,100 per ounce,” he added.
Increasing the appeal of gold bullion, the dollar index fell 1% while yields bond The 10-year US Treasury hit its lowest level more than a month after the data was released.
Investors will also be keeping an eye on US producer price index data due to be released on Wednesday. Meanwhile, the price of silver on the spot market rose 2.3% to US$22.81 per ounce.
Commerzbank lowered its forecast for silver prices at the end of 2024 to US$29 per ounce from US$30.
However, he added that silver will continue to outperform gold, this is due to the positive outlook for industrial demand and the ongoing economic transformation towards climate neutrality, in which silver plays an important role.
13:02 WIB
Comex gold rose 0.21% to US$1,970.70
Spot gold prices rose 0.16% or 3.09 points to US$1,967.38 per troy ounce at 13.02 WIB.
The Comex gold price for the December 2023 contract also rose 0.21% or 4.20 points to US$1,970.70 per troy ounce.
10:41 WIB
Comex & Spot gold rose compactly
Spot gold prices rose 0.06% or 1.23 points to US$1,965.52 per troy ounce at 10.41 WIB.
The Comex gold price for the December 2023 contract also edged up 0.14% or 2.70 points to US$1,969.20 per troy ounce.
2023-11-15 06:02:44
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