2023-09-16 17:57:29
Gold prices rose as the dollar fell once morest the yuan following promising economic data from China raised recovery hopes in the world’s largest consumer of gold, although the possibility of the Federal Reserve (the US central bank) raising interest rates once more keeps investors in a state of anxiety.
Spot gold prices rose 0.3% to $1,923 per ounce, and US gold futures contracts increased 0.2% to $1,936.90.
The yuan rose to its highest levels in two weeks once morest the dollar following data showed that Chinese factory production and retail sales in August exceeded expectations. The decline in the dollar makes gold denominated in the US currency more attractive to foreign buyers, according to Archyde.com.
Despite the gains, gold is still heading for a limited weekly decline following it declined yesterday, Thursday, to approach the $1,900 level, its lowest since August 23.
“Expectations that interest rates will remain high for a longer period are putting gold prices, which do not generate a return, under pressure,” said Yip Jun Rong, a markets expert at IG.
He added, “It does not seem that the economic conditions, which are still good in the United States, justify the need to lower interest rates soon, with the date of the reduction continuing to be postponed until the middle of next year.”
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