Sunday, December 10, 2023

Gold trades near 6-month low pressured by prospects for higher US prices

Gold prices were steady on Thursday, falling to their lowest levels in about six months in the previous session, as the strength of the US dollar and Treasury yields continued to come under pressure. does not yield interest.

* Spot gold traded flat at $1,874.29 an ounce at 0939 GMT, near its lowest level since March 13 reached on Wednesday. US gold futures traded at $1,891.30.

* The dollar held near a 10-month high against its major peers, while Treasury yields rose to a 16-year high as investors bet the US economy will outperform its competitors.

* “Despite the Federal Reserve’s rate hike, US data remains strong,” said UBS analyst Giovanni Staunovo. “The expectation that the Fed is not done and will do more is weighing on the price of gold.”

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* Higher rates raise the opportunity cost of holding bullion, which does not earn interest, and strengthen the dollar, the currency in which it is quoted.

* The price of gold has lost more than 3% so far this month and is on track to record its worst monthly performance since February. On Wednesday, the metal fell 1.4%, the biggest daily decline since July.

* Minneapolis Fed President Neel Kashkari said on Wednesday that he was not yet ready to say that rates had risen enough to bring inflation back to the 2% target, amid more evidence of strength in the current economy. .

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* Data showed on Wednesday that orders for durable US manufactured goods rose in August and that business spending on equipment appeared to have regained momentum.

* Market attention is now focused on the revised US GDP growth rate for the second quarter and weekly jobless claims, due to be released later in the day, while the index of Prices for August personal consumption expenditures (PCE), the Federal Reserve’s preferred inflation gauge, will be released on Friday.

* Among other precious metals, spot silver rose 0.1% to $22.54 an ounce, platinum added 0.3% to $889.63, while palladium gained 0.2% to $1,224. $.04.

Nation World News Desk
Nation World News Desk
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