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Investing.com – Gold prices rose during these moments of trading, today, Thursday, to the highest level in nine weeks, due to the decline in the dollar, in addition to increasing markets bets that the US Federal Reserve may soon stop the cycle of raising prices.
At the same time, markets are awaiting today the release of US unemployment claims data, along with the Philadelphia index of manufacturing industries, in addition to existing home sales, in order to anticipate more about the future path of monetary policy by the Federal Reserve, as markets are expected to move immediately after the release of this data.
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And the dollar today
It rose by 0.35% to $1,988 an ounce.
While spot contracts rose by 0.45% to 1987 dollars an ounce, its highest level since mid-May.
On the other hand, it fell by 0.15% to 99,840 points.
gold when settling yesterday
Gold prices stabilized at the settlement of transactions, yesterday, Wednesday, with the markets evaluating the issuance of economic data suggesting the near end of the interest rate hike cycle from the Federal Reserve.
Yesterday’s data showed an unexpected slowdown in the US housing market, as the pace of home starts fell by 8% in June and the pace of home building permits fell by 3.7%.
Upon settlement, gold futures contracts for August delivery settled at $1980.8 an ounce.
Gold will continue to rise
“Gold will continue to rally from current levels, as it is likely that we will reach the end of the Federal Reserve’s interest rate hike at the next meeting of the Federal Open Market Committee (on July 26),” said Baden Moore, Head of Carbon and Commodity Strategy at the National Bank of Australia.
Adding that the market is also focusing on potential interest rate cuts.
Low interest rates help bullion because it reduces the opportunity cost of holding non-yielding bullion.
Additionally, the dollar index fell near a one-year low, making gold cheaper for holders of other currencies.
The Fed is expected to raise interest rates by 25 basis points at its meeting next week, keeping them in a range of 5.25%-5.5% in 2023, with expectations growing between 59% and 88% to stabilize the monetary policy range after that, at 5.25% and 5%. 50% during the remaining three meetings this year. according to.
Investors will be watching US Initial Jobless Claims data later in the day, expected to rise to 242,000 from 237,000.
Moore said: “US jobless claims are on the rise during the second quarter, and if we see jobless claims flat or increased more than expected, I would expect a positive move for gold.”
2023-07-20 06:40:00
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