©Reuters.
Investing.com – Prices are currently higher as the yellow metal held onto most of its early morning gains as the US dollar fell to its lowest level in seven months as losses increased .
Market expectations regarding an easing of the Federal Reserve’s tightening were reflected in today’s market movement as gold jumped to its highest level since late April 2022, while oil rallied after sharp decline of last week.
Rubella Farooqi, US chief economist at High Frequency Economics, said: “In terms of Fed policy, while job growth remains strong and the unemployment rate is low, a slowdown in wages in December and a downward revision to November would be welcome news and could support a smaller 25 basis point hike in February.
Some Fed officials said the bank would continue its fight to bring inflation down to its 2% target, but St. Louis Chairman James Bullard said 2023 could finally bring some relief on the inflation front. ‘inflation.
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oil now
US light crude, Nymex, rose by more than 3%, reaching levels above 76 dollars a barrel.
The benchmark rose 2.9% to $81 a barrel levels during these moments in today’s trading.
The influx of travelers to China following the reopening of borders raised expectations on fuel demand and partially offset fears of a global recession.
“The optimism that has returned to oil markets with China’s reopening and more stimulus measures to revive the real estate sector is the main bullish driver for the price of a barrel of oil globally,” said the analyst at CMC Markets, Tina Ting.
The CMC Markets analyst added, “The decline in the US dollar has also added bullish momentum to oil markets, which has led to improved demand expectations next year.”
gold now
Gold futures are now up more than 0.75%, or $13, to $1,883 an ounce.
Rose – spot contracts for US dollar gold in the range of 0.6%, or the equivalent of $11, at $1878 an ounce.
“Labor market weakness is just around the corner and until that happens, gold could be stuck above $1,800,” said Edward Moya, senior analyst at OANDA.
“It has found its way higher since November as bullish bets on the dollar and yields fade,” said Yip Jun Rong, a market strategist at IG.
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dollar now
The major dollar index fell more than 0.6% to 103.17 points.
The 10-year yield rose to 3.57%, up 0.0156 points.
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