gold prices The dollar reversed a rising trend and hit an all-time high on Wednesday, putting additional pressure on both the yen and the euro. Meanwhile, global shares fell as investors were hesitant to make significant investments in view of the upcoming US elections.
At 0748 GMT, spot gold was trading at $2,754.25 an ounce, after hitting a record high of $2,755.30 earlier in the session. During this time, US gold futures Up 0.3% to $2,768.40.
Additionally, following recent US economic data that indicated continued growth and job creation in the economy, investors are reevaluating to what extent the Federal Reserve may need to lower interest rates.
,gold prices Another positive move was seen supported by gains in COMEX, where gold reached near $2750. The current favorable interest rate cycle has been one of the main factors supporting the gold rally. Additionally, uncertainty over the upcoming US election results is also playing a role in keeping gold prices higher, as such political events often increase demand for safe-haven assets like gold,” said Jatin Trivedi, VP Research Analyst – Commodity & Currency. , LKP said. Securities.
What is behind the rally?
Markets are expecting a 92 percent chance of a 25-basis-point rate cut at the Fed’s upcoming meeting in November, with another 25-bps cut expected by the end of the year.
Just a month ago, traders were predicting a potential decline of up to a full percentage point by January. Meanwhile, yields on benchmark US 10-year notes rose to a three-month high, rising 3.8 basis points to 4.244 percent.
Sleep The US dollar ignored its strength and hit a new record high of $2,757.99 an ounce. Demand for safe-haven gold has been partly fueled by concerns over the upcoming US elections and geopolitical tensions in the Middle East and Europe.
“Another important data point to watch this week is the preliminary jobless claims report on Thursday, which is expected to come in at 243K compared to the previous 241K. If jobless claims remain low, it will point to a stronger US economy, Expectations of aggressive interest rate cuts could trigger some profit-taking in gold after the recent rally, in such a scenario, a pullback towards support levels could occur 77,000 – 77,500 is possible in MCX, especially if jobless data indicates better economic strength. However, as long as gold remains above these support levels, the overall trend remains bullish,” Trivedi said.
bullionUS gold futures were last down 0.8 per cent at $2,726.51 an ounce, up 33 per cent this year, while US gold futures were down 0.1 per cent at $2,741.50 an ounce.
Spot silver fell 0.4 percent to $34.68 an ounce, its highest since late 2012, after a peak of $34.87 in the previous session.
