2024-02-23 19:14:00
© Reuters Gold prices are rising strongly as the end of the week’s trading approaches
Arabictrader.com – It recorded a noticeable increase during Friday’s trading in light of the strong demand for the yellow metal, the weakness of the US dollar coinciding with the approaching end of the week’s trading, and the statements of a number of members of the US Federal Reserve, which spoke regarding interest rates and monetary policy.
During today’s trading, spot contracts rose by 0.69% and recorded regarding $2038.34 per ounce. Meanwhile, gold futures contracts recorded regarding $2048.45 per ounce, an increase of 0.87%.
The American currency, which measures the performance of the American currency during today’s trading, fell slightly by approximately 0.04% and settled below the level of 104.00 points, and is trading at the level of 103.92 points, which had a negative impact on gold prices in light of the military relationship between the two parties.
Gold prices rose clearly over the course of today’s trading in light of the strengthening of market fears regarding the possibility of the Federal Reserve approaching an interest rate cut, especially following the statements of US Federal Reserve member Philip Jefferson yesterday, Thursday, in which he indicated that if the US economy moves in the right direction, it is likely It would be appropriate to start cutting interest rates later this year.
Also, US Federal Reserve Member Williams stated on Friday that it would be appropriate for the Federal Reserve to cut interest rates later this year, despite the recent data, adding that his view has not changed following the recent inflation data, and that it most likely will not. The Federal Reserve is heading to raise interest rates once more, and these statements have clearly strengthened gold and weakened the dollar.
At that time, gold prices rose strongly, coinciding with a clear weakness in US bond yields of various durations, as the 10-year US bond yield fell by 1.66% and recorded regarding 4.253%. The 20-year US bond yield also decreased by 1.31% and recorded regarding 4.518%. Also, the 30-year US bond yield fell by 1.76% to record regarding 4.384%, which clearly boosted demand for gold.
In addition, next week, the currency markets are awaiting the release of the US Consumer Expenditure Price Index data, which is considered the preferred inflation data of the US Federal Reserve, and these data will have strong repercussions on the trading of both gold and the dollar next week.
Among the prices of other metals, apart from gold today, metal contracts rose at the beginning of trading by 0.95% and recorded regarding $23,000 per ounce. Likewise, platinum metal contracts rose by regarding 0.40% and recorded regarding $909.15 per ounce.
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