Domestic gold price
Domestic gold price fluctuations
World gold price fluctuations
World gold prices received support as the USD plunged. Recorded at 6:30 p.m., the US Dollar Index, which measures the greenback's fluctuations against six major currencies, was at 103.685 points (down 0.53%).
Despite moving sideways at the end of the week, gold prices still recorded their best weekly increase in four weeks. Gold prices increased due to increasing speculation that the US Federal Reserve (FED) has completed its monetary tightening campaign.
The only dark spot in the gold market this trading week was the session on November 15, when the USD unexpectedly strengthened, causing gold prices to drop slightly. However, expectations that the FED had completed its interest rate hike roadmap restrained the decline in gold prices.
Many analysts remain bullish on gold as the precious metal enters a seasonally strong period. Some say a catalyst is needed to send prices to new highs.
Expert Daniel Ghali at TD Securities predicts that in the next six months, gold prices will likely increase to $2,100/ounce.
The gold market is ripe for a move above $2,000 an ounce, but the market may need to see weaker economic data to generate sustained momentum, said Adam Button, chief currency strategist at Forexlive.com.
He noted that falling inflation, with the US CPI falling to 3.2% in the 12 months to October, suggests the Federal Reserve is likely to keep interest rates on hold, but the central bank does not need to cut rates any time soon.
“The Federal Reserve is going to keep rates on hold longer than they really need to, but that just means they’re going to have to cut rates more and I think those expectations are supporting gold prices,” said Adam Button.
Meanwhile, Barbara Lambrecht, a commodities analyst at Commerzbank, said that although it is unlikely that the Fed will raise interest rates in December, she does not expect an early rate cut, which limits the potential for gold to rise.
“The recovery in the gold market is unlikely to continue. We only expect gold to surpass the $2,000 mark for a long time by the middle of next year,” said Barbara Lambrecht.
Gold is still a safe haven asset favored by many investors during this time due to geopolitical tensions in some regions of the world that continue to escalate.
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