Capitals (Reuters)
The price of gold rose from its lowest level in a week today, with the decline in US Treasury bond yields and the dollar abandoning the highest levels it reached in the previous session, but expectations of keeping interest rates high limited the gains of bullion.
Spot gold rose 0.1 percent to 1927.59 an ounce by 0603 GMT, after hitting its lowest since August 29 earlier in the session.
US gold futures erased previous losses to settle at $1,952.90. The US dollar fell 0.2 percent after hitting a nearly six-month high on Tuesday, while US 10-year bond yields fell from their highest levels in more than a week as markets were affected by signs of price hikes. Benefit.
Federal Reserve (US Central Bank) member Christopher Waller said the latest batch of economic data released gives the US central bank room to see if it needs to raise interest rates again.
“The US central bank’s policy-making guidance on a meeting-by-meeting basis has boosted the bets for further tightening (of monetary policy) in November or December,” said Yip Jun Rong, strategist at IG.
He added that the jump in oil prices does not provide much reassurance about global inflation expectations, as it increases investors’ conviction that the decision to raise interest rates in the long term is coming.
According to CME Group’s “Feed Watch”, markets currently expect 93 percent of the US central bank to hold off on raising interest rates temporarily in September, but about 40 percent forecast the possibility of a rate hike in November or December.
2023-09-06 11:17:40
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