Wednesday 27/November/2024 – 09:55 AM
Gold prices rose today, Wednesday, November 27, 2024, with the dollar falling, as markets await key inflation data in the United States in search of indications about the possibility of the US Federal Reserve cutting interest rates next month.
Gold rises as the dollar declines before the release of US inflation data
According to Reuters, gold rose in instant transactions by 0.3% to $2,639.30 per ounce by 05:23 GMT. Gold prices recorded their lowest level in more than a week yesterday, Tuesday. In contrast, US gold futures rose 0.7% to $2,639.40.
Dollar index
The dollar index, which measures the performance of the US currency against six major currencies, fell by 0.1%, enhancing the attractiveness of gold for investors holding other currencies. The dollar also fell to its lowest level in almost a week during yesterday’s trading, Tuesday.
“Gold witnessed fluctuations influenced by the fluctuation of the dollar. However, price movement was limited in Asian trading,” said Kyle Rodda, financial markets analyst at Capital.com.
Impact of the trade war
“In the long term, I think the trade war that (US President-elect Donald) Trump might launch could be positive for gold due to the high debt burden and the possibility of a partial abandonment of the dollar,” Ruda added.
Stay tuned for important economic data
Traders are eagerly awaiting the release of important economic data later today, including:
Core personal consumption expenditures index.
Unemployment claims.
First revision of GDP.
According to CME Group’s FedWatch tool, markets currently expect 63% of US interest rates to be cut by 25 basis points during the December meeting.
In China, data showed that the country’s net imports of gold through Hong Kong in October decreased compared to September and declined by 43 percent year-on-year.
On the geopolitical level, the ceasefire between Israel and the Lebanese Hezbollah group, which was reached with the mediation of the United States and France, entered into force at 0200 GMT on Wednesday.
As for other precious metals, silver rose in spot transactions 0.2% to $30.47 per ounce, platinum fell 0.1% to $926.74, and palladium rose 0.3% to $980.55.
