© Reuters Gold prices are rising strongly as the end of the week’s trading approaches
Arabictrader.com – It recorded a noticeable increase during Friday’s trading in light of the strong demand for the yellow metal, the weakness of the US dollar coinciding with the approaching end of the week’s trading, and the statements of a number of members of the US Federal Reserve, which spoke about interest rates and monetary policy.
During today’s trading, spot contracts rose by 0.69% and recorded about $2038.34 per ounce. Meanwhile, gold futures contracts recorded about $2048.45 per ounce, an increase of 0.87%.
The American currency, which measures the performance of the American currency during today’s trading, fell slightly by approximately 0.04% and settled below the level of 104.00 points, and is trading at the level of 103.92 points, which had a negative impact on gold prices in light of the military relationship between the two parties.
Gold prices rose clearly over the course of today’s trading in light of the strengthening of market fears about the possibility of the Federal Reserve approaching an interest rate cut, especially after the statements of US Federal Reserve member Philip Jefferson yesterday, Thursday, in which he indicated that if the US economy moves in the right direction, it is likely It would be appropriate to start cutting interest rates later this year.
Also, US Federal Reserve Member Williams stated on Friday that it would be appropriate for the Federal Reserve to cut interest rates later this year, despite the recent data, adding that his view has not changed after the recent inflation data, and that it most likely will not. The Federal Reserve is heading to raise interest rates again, and these statements have clearly strengthened gold and weakened the dollar.
At that time, gold prices rose strongly, coinciding with a clear weakness in US bond yields of various durations, as the 10-year US bond yield fell by 1.66% and recorded about 4.253%. The 20-year US bond yield also decreased by 1.31% and recorded about 4.518%. Also, the 30-year US bond yield fell by 1.76% to record about 4.384%, which clearly boosted demand for gold.
In addition, next week, the currency markets are awaiting the release of the US Consumer Expenditure Price Index data, which is considered the preferred inflation data of the US Federal Reserve, and these data will have strong repercussions on the trading of both gold and the dollar next week.
Among the prices of other metals, apart from gold today, metal contracts rose at the beginning of trading by 0.95% and recorded about $23,000 per ounce. Likewise, platinum metal contracts rose by about 0.40% and recorded about $909.15 per ounce.
2024-02-23 19:14:00
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