© Reuters.
Investing.com – Gold started trading on Thursday with an unexpected rally after giving up most of its gains yesterday Wednesday after the release of positive data for the dollar pulled it back again at the forefront of the scene.
From the rise of gold, on the other hand, comes the sudden drop of the dollar, after yesterday’s awakening, to go down, heading towards the lowest level since last June.
Investor sentiment on Wall Street rallied Wednesday on Wednesday, following data showing rising US consumer confidence, to continue the stock market’s rally for a second day after posting 4 consecutive sessions of losses.
Yesterday, Wednesday, it rose 1.6%, or the equivalent of 526 points, to 33,376 thousand points, and the Standard & Poor’s index rose 1.5%, or 56 points, to 3,878 points, and the Nasdaq rose 1.5%, equivalent to 162 points, registering 10.709 thousand points.
gold now
Spot contracts for gold rose US dollars during these trading moments today, Thursday, within the $4 range, or the equivalent of 0.2%, to reach $1818 an ounce levels.
Futures contracts for the yellow metal rose during these trading moments on Thursday in the range of 0.15%, or the equivalent of $2.5, to reach levels near $1,828 an ounce.
dollar now
Conversely, the dollar gave up yesterday’s gains, falling within 0.3% to levels below 104 points, and the major dollar index fell against a basket of major currencies to levels of 103.9%.
On the other hand, the 10-year yield fell during these moments of trading on Thursday, within the 0.0205 points range, as low as 3.65%.
what happened?
It stabilized at close of trading Wednesday at its highest level in a week as the US dollar surged to give up most of its gains.
The rising dollar made US-denominated bullion more expensive for overseas buyers, at the same time, Wall Street indexes soared, putting pressure on the yellow metal.
gold prices
The price of gold futures contracts settled at $1825.40 an ounce yesterday, Wednesday, and the spot delivery price of the yellow metal fell 0.03% to $1817.28 an ounce. dollars an ounce.
On the other hand, the dollar index, which measures the US currency against a basket of 6 major currencies, rose 0.3%, to 104,253 points.
The change in market performance coincided with sharp gains in Wall Street stocks after strong US data was released that beat expectations.
Important data
- — The current account deficit (Q3) decreased to $217.1 billion, compared with an expected deficit of $222 billion, and from a prior deficit of $238.7 billion.
- – The CB Consumer Confidence Index (Dec) rose above expectations by registering 108.3 points, versus expectations of 101 points and versus the previous reading of 101.4 points.
- – Existing Home Sales (November) fell to 4.09 million units, compared to forecast sales of 4.2 million units and versus 4.43 million previously reported.
- Existing Home Sales (MoM) (November) fell more-than-expected by 7.7% versus expectations for a 5.4% decline from a previous reading of 5.9%.
gold market
Ajay Kedia, director of Kedia Commodities in Mumbai, said: “Gold is down slightly after yesterday’s rally… Market conditions are very calm, having entered the holiday mood.”
Last week, Federal Reserve Chairman Jerome Powell said the US central bank would raise interest rates more next year, even as the economy slides into a potential recession.
OCBCFX strategist Christopher Wong said higher interest rates usually weigh on gold, but as we enter the latest Fed tightening cycle, gold could recover.
“However, a more substantial price recovery will require more than a calibration of the Fed’s tightening, and the US central bank may need to pause and possibly cut interest rates,” he added.
