Gold prices ended with a slight gain on Monday (18th), with traders taking advantage of falling prices to buy at low prices. At the same time, the focus shifted to the inflation data to be released this week to understand whether the recent dovish turn of the Federal Reserve (Fed) There is data to support it.
- New Yorkgold futuresrose 0.2% to US$2,040.80 an ounce.
- goldThe spot price rose 0.4% to US$2,026.5374 per ounce.
“The market is in pause mode, waiting for the next big economic data or news, but there is a buy-the-dip mentality among traders and the technical picture looks bullish,” said Kitco Metals senior analyst Jim Wyckoff.
Wyckoff said forces supporting gold prices at the moment include a weaker U.S. dollar, looser monetary policy and safe-haven demand stemming from tensions in the Middle East.
The Fed last week kept interest rates on hold and signaled that its historic tightening of monetary policy may be over as inflation fell as expected.
But Chicago Fed President Austan Goolsbee said the Fed was not precommitting to cut interest rates anytime soon.
The CME Group’s FedWatch tool shows traders estimate a 69% chance of a rate cut in March next year.
To those that do not bear fruitgoldIn other words, when interest rates fall, holdinggoldThe opportunity cost will be relatively low, which will be beneficial to the price.
10-year U.S. Treasury yieldIt hovered at July’s lows on Monday. Traders awaited a slew of economic data this week, including November’s core personal consumption expenditures (PCE) price index.
Intesa Sanpaolo said that the downward trend in U.S. interest rates is usually accompanied by strong and bullishgoldperformance, this imbalanced trend is likely to continue and benefitgold, which will be particularly obvious in the first half of next year.He estimates that by 2024goldPrices can rise to an average of $2,050 per ounce.
silverThe spot price fell 1+0.3% to US$23.765 per ounce,platinumrose 0.4% to $943.75 an ounce,stipendIt rose 0.8% to $1,182.36 an ounce, hitting a two-and-a-half-month high.
2023-12-18 22:23:23
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