Spot gold prices In Asian trading on Wednesday (27th), gold prices maintained a narrow range of fluctuations. The market’s optimism about the Federal Reserve’s (Fed) early interest rate cut continued to increase, pushing gold prices to rise sharply in December.
recent trading daysgoldA breakout of the key level puts the current price within $100 of the all-time high hit earlier this month.
Because the Fed indicated that it has completed raising interest rates and will begin cutting interest rates in 2024, it triggeredgoldRecent gains. The market is betting that the Fed will cut interest rates as soon as March 2024, and Ewing’s recent data shows that US inflation continues to cool.
- New York for February deliverygold futuresIt rose about 1% to $2,089.40 an ounce.
- goldSpot prices were steady at $2,064.84 an ounce.
Interest rate cut hopes strongly push for 2023goldprice
gold After the sharp rise in December, the full-year increase is expected to reach 12% to 14%. But given that U.S. interest rates remain high,goldStill lags behind most risk-driven assets, especially stocks. In contrast,S&P 500 The index is up about 24% so far this year.
despite this,goldFurther benefits are expected next year, especially from U.S. interest rate cuts and worsening global economic conditions.Although the U.S. economy remains somewhat resilient,EURThe rest of the world, including the region and China, is grappling with continued slowdowns in growth.
The market generally expects the Fed to cut interest rates 3 to 5 times in 2024, and the rate cut may occur as early as March.
High interest rates drive up investmentgoldopportunity cost, thus reducing the limitgoldUpside in 2023.
Amid signs that the war between Israel and Kazakhstan may escalate, increased demand for safe havens may also drivegoldHedging needs.
Other metals
Copper prices are expected to rise moderately in 2023
Among industrial metals, copper prices extended recent gains on Wednesday as a weaker dollar boosted most commodity prices.
Delivered in MarchCopper futuresrose 0.5% to $3.9223 per pound.
Despite a strong rebound in December, copper prices have been hit hard, falling to $3.5195 a pound earlier this year, but are still up modestly this year, around 3%.
But copper is expected to rebound strongly in 2024 due to increased demand for electric vehicles and a global push for green energy. Demand for copper is expected to surge as the metal is a key component of batteries and electric technology, and as Peru and Panama has closed major mines and supplies are also expected to tighten.
2023-12-27 23:22:02
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