© Archyde.com. What are the reasons that prompted gold to rise again today?
Arabictrader.com – It witnessed a clear rise during the trading day, to reach its highest level since last August, after the yellow metal managed to erase its losses in the previous session and achieve some profits, taking advantage of the dollar’s return to decline again.
Prices now
In terms of trading, spot gold prices rose by 0.15% to reach $1,773.42 an ounce, and bullion futures contracts for December delivery also rose by 0.11%, to record $1,778.80 an ounce.
At the same time, in addition to gold, the prices of futures contracts for December delivery fell by 0.33% to $22.04 an ounce, while prices rose by about 0.93% to $1031.98 an ounce, and prices rose by 1.98% to $2,069.98 an ounce.
The most important factors affecting gold prices
The decline – which measures the performance of the US currency against a basket of 6 major currencies – decreased by 0.45%, recording 106.17 points, its lowest level since last August, clearing the way for gold to recover from yesterday’s losses, as the decline in the dollar reduces the cost of holding gold for buyers holding currencies. other.
This sharp decline in the dollar came in light of the increasing market expectations that the US Federal Reserve may reduce the pace of raising interest rates in its upcoming meetings, in order to avoid an economic recession in time, especially after the US labor market data showed a rise in the unemployment rate last month.
Yesterday, Monday, Deputy Governor of the US Federal Reserve, Elle Brainard, said that it is likely that the bank will slow down the pace of raising interest rates, but she confirmed that the US Federal Reserve still has more interest rate hikes ahead of it.
Brainard’s statements pushed the dollar to decline in a corrective movement to its previous path, so that gold rose strongly – following the decline in the US currency – to its highest level in 3 months on August 17th.
Goldman Sachs (NYSE:) and Morgan Stanley have lowered their forecasts for US inflation in the previous period, and the two banks expect it to fall below 2% by the end of 2023.
Most investors now expect the US Federal Reserve to raise interest rates by only 50 basis points at its next meeting in December, down from the 75 basis points that the Fed adopted in its increases during the previous four meetings.