Home » The international gold price outlook is still looking at 1766 US dollars Provider FX678

The international gold price outlook is still looking at 1766 US dollars Provider FX678

by admin
The international gold price outlook is still looking at 1766 US dollars Provider FX678
The international gold price outlook is still looking at 1766 US dollars

On Friday (November 25), the international gold price rose to a new high of US$1,761.06 per ounce, as the Fed’s future interest rate hike strategy showed a dovish tendency, and the market outlook still looked at US$1,766. However, market liquidity was limited during the Thanksgiving holiday, and investors were cautious about holding positions over the weekend, which limited the rise in gold prices.

At 14:49 Beijing time, spot gold rose 0.07% to $1,756.53 an ounce; the main COMEX gold futures contract rose 0.65% to $1,756.9 an ounce; the U.S. dollar index fell 0.07% to 105.772.

IG market strategist Yeap Jun Rong said that the weak dollar provided good support for gold, as expectations for a slowdown in the pace of interest rate hikes are seen as a sign of peak hawkishness, and investors will further unwind bearish positions in gold that have been built since the beginning of the year.

Minutes of the Fed’s November meeting, released earlier this week, showed a “substantial majority” of policymakers agreed that a slower pace of rate hikes “may soon be appropriate”. Most traders expect the Federal Reserve to lower interest rates to 50 basis points at its December meeting. As a result, the dollar turned down again.

But Yeap Jun Rong added that given the difference in forecasts before and after the latest U.S. inflation data, the Fed’s December policy meeting remains uncertain, making gold extra sensitive to the upcoming data as buyers look to further reassure current rate hike expectations Get well anchored.

See also  Lei Jun, deputy to the National People's Congress and chairman of Xiaomi Group: Establish and improve the carbon footprint accounting system to help my country's new energy vehicle industry achieve "double carbon" | Daily Economic News

The high interest rate environment has constrained gold’s inflation-hedging function because of the higher opportunity cost of holding non-yielding assets. Holdings of the world‘s largest gold-backed ETF, the SPDR Gold Trust, have fallen by about 68 tonnes since the start of the year.

On the daily chart, the price of gold started an upward wave III from $1,725, and the upper resistance looked at the 23.6% target of $1,766 and the 38.2% target of $1,791. Wave III is a sub-wave of the upward (I) wave that started at $1616. On the hourly chart, the price of gold may retest around $1,750 to confirm support.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy