Books – Islam Saeed Saturday, July 15, 2023 12:37 PM
Gold ended last week’s trading, recording its best weekly performance since last April, after US inflation data that raised expectations that the US Federal Reserve may need to raise interest rates only once during the second half of the year, which pushed the dollar to collapse.
Spot gold prices rose during the past week by 1.6%, to record the highest level in a month at $1963 an ounce, to record an increase of more than $30h, marking the second consecutive week of gains, according to Gold Billion analysis.
Yesterday, Friday, gold prices fell by 0.3%, to end a series of increases that lasted for five consecutive sessions, during which the precious metal was able to breach the important resistance area at 1930-1940 dollars an ounce.
The main reason behind this rise in gold prices was the US inflation data for the month of June. The consumer price index showed a less than expected rise and recorded the smallest annual increase in more than two years by 4.8%, compared to the previous reading of 5.3%, in light of the continued decline in inflation rates.
And Gold Billion analysis stated that the data increased expectations that the US Federal Reserve may need only one rate hike during the second half of the year, which has already been priced in the markets with a probability of more than 96% to raise interest by 25 basis points during the current July meeting, and this caused In open selling operations on the US dollar, which collapsed during last week’s trading, according to the dollar index, which measures its performance against a basket of 6 major currencies, so that the index recorded a weekly decline of 2.3%, which is the largest weekly decline since November 2022, and reaches its lowest level since April 2022 near From the levels of 99 points.
Despite this, the dollar index was able to rise yesterday before the weekly close, to record an increase on Friday by 0.2%, after recording a decline for six consecutive sessions, and gold got support from the weak dollar levels and the decline in US government bond yields, as the yield on 10-year bonds decreased during Last week, it increased by nearly 6%, and recorded the lowest level in two weeks at 3.754%.
2023-07-15 09:37:00
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