Tuesday, February 27, 2024

Gold prices rise and head for weekly gains


Gold prices edged higher during today’s trade on Friday, November 24 (2023), as a fall in the US dollar led to continued gains for the second consecutive session.

Precious metal prices are heading for a second straight week of gains as markets grow more confident that the Federal Reserve will do enough to raise interest rates.

Traders widely expect the central bank to leave interest rates unchanged in December, while the chance of a rate cut in early March is around 26%.

Gold price today

At 08:15 a.m. GMT (11:15 a.m. Mecca time), gold futures – for delivery in February 2024 – rose 0.04%, or the equivalent of $0.8, to $2,014.

Gold futures contracts rose 0.05% to $1,993.20 an ounce, according to data seen by the specialist energy site.

At the same time, spot silver fell 0.20% to $23.63 an ounce, spot platinum rose about 0.33% to $921.45 an ounce, and spot palladium rose 0.06% to $1049.92. ounce.

As he retreats Dollar symbol – It tracks the performance of the US currency against 6 major currencies – 0.19%, reaching 103.72 points.

Gold jewelry at an exhibition – Photo from Reuters

Gold Price Analysis

“The dominant theme in financial markets over the past week has been lower yields and a weaker US dollar, and these factors are helping gold prices rise,” said Tim Waters, chief trading analyst at KCM.

The dollar index is on track for a second weekly decline, while gold prices are lower for holders of other currencies.

Markets lowered expectations for a federal rate cut in 2024 after data last week showed the number of Americans filing new claims for unemployment benefits fell less than expected.

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However, the stronger-than-expected jobs data did not change the view that the labor market is sluggish in the U.S. amid rising interest rates.

Earlier this week, central bank meeting minutes showed the central bank would move “cautiously”; All participants felt that it was “appropriate to maintain” the current rate system.

Traders widely expect the central bank to leave interest rates unchanged in December, while the chance of a rate cut in early March is around 26%.

“There is a disconnect between market expectations for interest rates and what the Fed minutes showed, which is causing some hesitation in gold prices,” Waters said.

Spot gold could retest resistance at $1,999 an ounce, and a break above that could lead to gains in the $2009 to $2016 range, according to technical analyst Reuters.Reuters Wang Dao.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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