Buoyed by a weaker US dollar, as the market awaits statements from Fed officials for signals on the path of interest rates.
The price of gold “touched” a weekly high today Tuesday, boosted by a weaker US dollar as the market awaits statements from US Federal Reserve officials (Fed) for messages about the course of the American interest rates.
In particular, the spot price of gold rose as much as 0.4% to $2,623.54 an ounce, its highest since Nov. 12, before easing slightly to trade at $2,620.20, up 0.31%. It is noted that on Monday it rose 2%.
At the same time, the December delivery gold gaining 0.41% to $2,625.30 an ounce.
The US dollar is retreating today amid profit-taking after last week’s rally. It is noted that a weaker dollar makes gold less expensive for buyers of other currencies.
Recent strong economic data in the US has raised questions about whether the Fed will continue to cut interest rates after the 75 basis point cuts since September. Several Fed officials are scheduled to speak this week.
Gold’s move will reflect any change in expectations about the Fed’s December meeting, said Kyle Rodda, an analyst at Capital.com, adding that any data or comments from officials on the next steps on interest rates will they matter.
Traders currently see a 58.8% chance of a 25 basis point cut in December versus a 41.2% chance of keeping rates unchanged.
In other metals, its spot price of silver strengthens by 0.19% to 31.22 dollars while the platinum loses 0.27% to $972. Finally, the palladium losing 0.32% to $1,005, after yesterday’s 5% rise.
Source: Skai
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