2023-11-23 04:22:48
The price of gold rose on Thursday, nearing the key $2,000 an ounce level, as broad U.S. dollar weakness and falling Treasury yields boosted demand for bullion.
Spot gold was up 0.4% at $1,997.39 an ounce, as of 0354 GMT, following hitting a three-week high of $2,007.29 on Tuesday.
U.S. gold futures gained 0.3% to $1,998.60.
“The anticipation of this effective pivot to the top of the interest rate hike cycle translates into continued weakness in the US dollar and longer-term US yields, which will support gold prices, at least in the short term,” said Kelvin Wong, senior market analyst for Asia Pacific at OANDA.
The dollar was down 0.1% once morest its rivals following gains over the past two sessions, making gold cheaper for holders of other currencies.
Benchmark 10-year U.S. Treasury yields fell to a two-month low on Wednesday.
U.S. consumers’ inflation expectations rose for the second straight month in November, despite growing signs that price increases are slowing, according to a survey released Wednesday.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, but that probably doesn’t change the view that the job market is slowing amid higher interest rates.
Traders generally expect the U.S. Federal Reserve to leave rates unchanged in December, but they lowered their expectations for a rate cut in 2024 following jobless claims data, according to CME’s FedWatch tool .
At their latest monetary policy meeting, Fed officials agreed to proceed “cautiously” and only raise interest rates if progress in controlling inflation falters, minutes show of the meeting which was held between October 31 and November 1.
Lower interest rates lower the opportunity cost of holding gold.
Spot silver rose 0.5% to $23.73 an ounce, while platinum rose 0.5% to $926.50 and palladium rose 0.2%. to reach $1,059.95.
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