Spot gold prices jumped more than 1% on Wednesday (13th) after the U.S. Federal Reserve (Fed) signaled that the interest rate hike cycle was over and that it might cut interest rates next year. U.S. stocks rose sharply in response, and U.S. bond yields and the U.S. dollar both weakened.
- goldThe spot price rose 1.3% to US$2,004.79 per ounce.
- New York for February deliverygold futuresAt the close before the Fed decision was announced, it edged up 0.2% to $1,997.30 an ounce.
The Fed decided on Wednesday to keep interest rates unchanged at 5.25-5.50%, but 17 of the 19 officials predicted that interest rates at the end of 2024 would be lower than now, with the median showing a rate cut of about 3 yards (75 basis points).
David Meger, director of metals trading at High Ridge Futures, said: “The Fed admitted that inflationary pressures continued to slow down and raised expectations for interest rate cuts, which caused U.S. bond yields and the U.S. dollar to fall sharply, which in turn contributed to thegoldandsilver’s rise. we believe,goldThe current rally will be durable. “
ICE dollar index (DXY) fell 0.6%, representing overseas buyers buying dollar-denominatedgoldtime, the cost is reduced.10-year U.S. Treasury yieldgo lower, reducing investor holdingsgoldThe cost of such non-yielding assets.
The CME Group’s FedWatch tool shows that traders now predict that the probability of the Fed cutting interest rates in March next year has risen to about 60%.
rightgoldIn general, a rate cut means holdinggoldopportunity cost decreases.
Fed Chairman Jerome Powell said on Wednesday that inflation has slowed and the unemployment rate has not risen significantly. At the same time, the effects of monetary tightening have not yet been fully realized. A report earlier on Wednesday showed that the U.S. producer price index (PPI) was unexpectedly flat in November, indicating that inflationary pressures on the factory side continued to ease.
goldThe trend may be affected by the decisions of the European Central Bank (ECB) and the Bank of England (BOE) on Thursday.
silverSpot prices rose 2.5% to $23.32 an ounce,platinumedged up 0.1% to $930.56 an ounce,stipendrose 0.5% to $983.83 an ounce.
2023-12-13 20:38:58
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