The global price of gold stabilized today, Friday, in spot transactions, at $1,992.46 per ounce. Gold headed for gains for the second week in a row, supported by the weakness of the dollar. Meanwhile, markets grew more confident that the US Federal Reserve had completed raising interest rates.
Gold rise
The yellow metal rose 0.7 percent this week. Little change was recorded in US gold futures, which recorded $1,993.40.
In this context, Tim Waterer, Chief Market Analyst at KCM Trade, highlighted that declining returns and a decline in the US dollar were the prevailing topics in the financial markets during the past week. This atmosphere helped raise gold prices.
Dollar falls
The dollar index fell 0.2 percent against its competitors. It is heading towards recording its second weekly decline. This makes gold less expensive for holders of other currencies. Meanwhile, standard 10-year US Treasury bond yields rose to 4.4568 percent.
Moreover, markets reduced their expectations for lower interest rates in 2024. That follows data revealing that the number of Americans filing for unemployment benefits fell more than expected last week.
However, the view that the labor market is slowing in the United States amid high-interest rates has not changed. That is in light of the jobs data being stronger than expected.
Read: Saudi concludes November sukuk issuance at SAR2.67 bn
No change in December interest rates
Traders widely expect the US Federal Reserve to leave interest rates unchanged in December. On the other hand, 26 percent of traders expect the US Federal Reserve to cut interest rates next March at the earliest. That is according to the CME’s FeedWatch tool. None of this reduces the opportunity cost of gold holdings.
As for other precious metals, silver rose in spot transactions 0.1 percent to $23.69 per ounce. Meanwhile, palladium increased 0.4 percent to $1,049.55. Whereas, platinum settled at $915.57 but is heading for the second weekly rise.
Earlier, gold prices rose in Asian markets in light of investors’ concerns about the current situation in the Middle East. Many resort to investing in gold as a safe haven to protect their savings from the risks of currency devaluation.
For more news on markets, click here.
