For the first time in five days, gold prices increased in European trade on Thursday, maintaining their gains over two-week lows as the dollar stagnates versus a group of important competitors.
The advances come ahead of significant US statistics later today that will offer new information on the direction of interest rates as well as crucial hints about the state of the US labour market as of right now.
Following the release of the Fed’s meeting minutes, which were more positive than anticipated, prices for a US interest rate drop in March 2024 fell.
Today’s Gold Prices
After dropping 0.8% yesterday—the worst decline since December 11—and hitting two-week lows at $2,030, gold prices increased by 0.4% to $2,049 an ounce. This came after the Fed’s minutes.
The Fed
The minutes of the Federal Reserve’s meeting on December 13th revealed that policymakers think interest rates should stay high for a while.
By year’s end, members think that interest rate reductions would be more reasonable.
The minutes damaged the chances of several early US interest rate cuts this year by demonstrating a blatantly cautious attitude towards inflation and interest rates.
Related Article: 10 investors discuss AI’s future and what’s beyond the ChatGPT craze
US Exchange Rates
The likelihood of the first US interest rate decrease at the Fed March meeting dropped to 73% when the minutes were released.
The US dollar
Against a group of significant competitors, the dollar index lost 0.2% on Thursday, moving away from a throw-weeik high of 102.73 and heading towards its first loss in five days.
Investors are now awaiting significant US labour statistics on employment in the private sector as well as last week’s jobless claims.
Crucially, the US payrolls report—which is expected to be announced on Friday—may offer new information on the probable direction of US monetary policy going forward.
The SPDR
The SPDR Gold Trust’s holdings of gold dropped 4.33 tonnes Wednesday, to 874.21 tonnes, the lowest level since November 13.
Source:
https://www.economies.com/commodities/gold-news/gold-prices-rebound-as-dollar-stalls-43849
Dwayne Paschke specializes in writing, management, development, design and Search Engine Optimization. Although he has worked for 8 years in the industry, he never found an ideal person to work with as a partner. Later, he found Sebastian Pearson, and they both found specific understanding between them. Both of them divided their tasks in this project and are running this venture successfully.