VOT Research Desk
This Thursday, the price of gold has risen to a level not seen in the previous two weeks, close to $1,780, consolidating a three-day winning streak.
A clear dovish message from Federal Reserve Chair Jerome Powell, which guaranteed a 50 basis points (bps) rate hike in December, is the primary factor driving the recent increase in the price of gold. The US dollar is left licking its wounds as a result of Powell’s dovish stance.
Chinese reopening confidence is encouraging risk taking and driving up the price of gold at the expense of the US dollar, a safe haven currency.
Together with the US Dollar’s decline, the mixed US economic data painted a contrasting image of the US economy’s status. As the Fed enters the blackout, all eyes are now on Friday’s release of US nonfarm payrolls.
prior to the monetary policy meeting on December 13–14. The US Core PCE inflation and ISM Manufacturing PMI statistics could also be closely examined in the interim.
