©Reuters. What are the reasons that pushed gold to rise again today?
Arabictrader.com – Has seen a sharp rally during the trading day, to reach its highest level since last August, after the yellow metal was able to erase the losses of the previous session and take profits, taking advantage of the return of the dollar to go down again.
Prices now
In trading terms, spot gold prices rose 0.15% to reach $1,773.42 an ounce, and bullion futures contracts for delivery in December also rose 0.11% to reach 1,778 $.80 an ounce.
At the same time, in addition to gold, futures prices for December delivery fell 0.33% to $22.04 an ounce, while prices rose by about 0.93% to $1031.98. dollars an ounce and prices increased by 1.98% to 2,069.98 dollars an ounce.
The most important factors affecting gold prices
The downside – which measures the performance of the US currency against a basket of 6 major currencies – decreased by 0.45%, registering 106.17 points, the lowest level since last August, paving the way for gold to recover from yesterday’s losses as the declining dollar reduces the cost of holding gold for buyers who hold currencies.
This sharp drop in the dollar came in light of growing market expectations that the US Federal Reserve could ease the pace of interest rate hikes at its upcoming meetings, to avoid an economic downturn over time, especially after the data labor market trends showed an increase in the unemployment rate last month.
US Federal Reserve Lieutenant Governor Elle Brainard said on Monday that the bank was likely to slow the pace of interest rate hikes, but confirmed that the US Federal Reserve still has more interest rate hikes ahead of it. interest rates .
Brainard’s statements pushed the dollar lower in a corrective move from its previous path, so that gold soared – following the US currency’s decline – to its highest level in 3 months on Aug. 17.
Goldman Sachs (NYSE:) and Morgan Stanley lowered their forecasts for US inflation in the lead-up, and the two banks expect it to fall below 2% by the end of 2023.
Most investors now expect the US Federal Reserve to raise interest rates by just 50 basis points at its next meeting in December, down from the 75 basis points the Fed has taken in its hikes during the previous four meetings.
