Jakarta, CNBC Indonesia – The United States (US) dollar index and US Treasury yields pushed gold to fall after setting a record high, defeating demand for safe havens amid the US Presidential Election and geopolitical turmoil in the Middle East region.
On trading on Wednesday (23/10/2024) the price of gold in the spot market closed down 1.12% at the level of $2,717.54 per troy ounce. Before closing lower, the price of gold touched an all-time high in intraday trading at US,758.37 per troy ounce.
This weakening confirms the very volatile movement of gold in the last four days.
The price of gold rose 1.03% on October 18 or Friday last week and fell 0.02% on Monday this week, rose 1.06% on Tuesday this week but fell again 1.12% Wednesday.
At the same time, as of 05.45 WIB Thursday (24/10/2024), the price of gold on the spot market had strengthened 0.01% to US $ 2,717.69 per troy ounce.
Gold prices fell more than 1% after hitting a record high on Wednesday, as a stronger US dollar and a rise in US Treasuries provided support from safe-haven demand. -related to the US presidential election on November 5 and the Middle East war.
The US dollar index rose to 104.431 in trading last Wednesday (23/10/2024). The index went to its highest level since the end of July 2024 or almost the last four months. Meanwhile, the 10-year US Treasury yield rose to 4.21% or the highest since July 26, 2024.
The strengthening of the US dollar and US Treasury yields had a negative impact on gold. Gold purchases are converted into dollars so that an increase in the US dollar makes gold more expensive to buy, thus reducing purchases.
Gold also offers no yield so rising US Treasury yields make gold less attractive.
“There is some profit and Treasury yields are rising, gold will have a hard time moving up with the guidance on Treasury yields,” Bob Haberkorn, senior market strategist at RJO Futures, told Reuters.
However, gold could reach the level of US$ 2,800 per troy ounce by the end of the week due to demand for a safe haven, Haberkorn said.
“It’s the uncertainty of the US election and the ever-increasing debt burden in the US. They had to issue billions of dollars in debt so well ahead of the pick into a relatively thin and uncertain market,” said Ole Hansen, head of commodity strategy at Saxo Bank.
With the US presidential election less than two weeks away, Vice President Kamala Harris holds a narrow 46% to 43% lead over former Republican President Donald Trump, according to a Reuters poll. / Ipsos.
CNBC Indonesia Research
2024-10-23 23:20:00
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