Wednesday 13/November/2024 – 12:17 PM
Gold prices rose slightly during trading today, Wednesday, with some investors heading towards purchasing operations Gold prices decline To the lowest level in two months during yesterday’s session, on the other hand, the markets are awaiting US inflation data today, which may contribute to moving gold prices again.
Gold prices globally
The price of an ounce of international gold rose during today’s trading by 0.2%, reaching the highest level at $2,613 per ounce, after opening today’s trading at $2,597 per ounce, and is currently trading at $2,604 per ounce, according to Gold Billion’s analysis.
Gold witnessed three consecutive sessions of decline, which pushed it to record its lowest level in two months at $2,589 per ounce, recording a 2.3% decline since the beginning of the week, with the continued side effects of Trump’s victory during the US presidential elections.
After the recent decline in gold, some investors turned to buying operations, taking advantage of the current decline in gold within the negative correction range that began two weeks ago, affected by a number of factors, most notably Donald Trump’s victory in the US presidential elections and the resulting significant rise in US dollar levels and a decline in demand for safe havens. .
The recent sessions witnessed gold being negatively affected by the strength of the dollar, driven by expectations of inflationary policies by US President-elect Donald Trump affecting the cycle of lowering interest rates. This comes after the Fed cut interest rates by a total of 75 basis points in the past two months, and is expected to cut interest rates by 25 basis points at its next meeting in December according to market expectations that place the probability of this at 65%.
One of the reasons behind the recent decline in gold prices is concerns that the policies of the new US administration may push inflation rates to remain stable or rise, which may result in a slower pace of interest rate cuts by the US Federal Reserve, which is negative for gold.
Uncertainty about interest rates was heightened by a warning from Minneapolis Federal Reserve Bank President Neel Kashkari, who said that any increase in inflation could prompt the Fed to stop cutting interest rates.
Kashkari’s warnings come ahead of the release of US inflation data later in today’s session, and the reading is expected to show that inflation remained steady in October, which bodes ill for expectations of continued monetary easing by the Federal Reserve.
In addition, the US producer price index and weekly unemployment claims are scheduled for Thursday, and retail sales data is expected on Friday. The statements of Federal Reserve Chairman Jerome Powell and other US central bank officials also remain important for markets this week.
The detailed Commitments of Traders report issued by the Commodity Futures Trading Commission, which shows the speculative situation in gold for the week ending November 5, showed a decrease in the purchase of gold futures contracts by individual traders, funds and financial institutions for the purpose of speculation by -29,820 contracts compared to the last report, while it decreased Sell contracts amounted to 6496 contracts.
The report reflects a decline in demand for investment in gold in general due to the impact of the results of the US presidential elections, which increased the demand for risky investments at the expense of gold, in addition to expectations of a decrease in the chances of the US Federal Bank continuing its pace of reducing interest rates.
