Gold prices reach new highs and are supported by a number of factors.
Gold price (XAUUSD) extends its one-week-old uptrend for the third day in a row, reaching a new all-time high near $2,685-2,686 during the early European session on Thursday. The predicted interest rate reduction by major central banks, together with geopolitical dangers arising from ongoing wars in the Middle East, prove to be crucial drivers of flows towards the non-yielding yellow metal.
Meanwhile, the marketplace The expectation that the Federal Reserve (Fed) will proceed with modest interest rate decreases keeps the yield on the benchmark 10-year US government bond over 4%. This, in turn, pushes the US Dollar (USD) to its highest level since early August, discouraging bulls from putting new wagers on the gold price. Traders are now anticipating US macroeconomic updates for short-term possibilities.
Daily Digest Market Movers: Gold price remains solid at record high, seemingly untouched by bullish USD.
The current drop in crude oil prices is likely to reduce inflationary pressures and allow major central banks to lower interest rates further, driving flows to the non-yielding gold market.
The European Central Bank is on track to deliver its This Thursday saw the third interest rate cut of the year, while a dramatic drop in UK inflation renewed betting on a rate cut by the Bank of England in November.
Furthermore, the CME Group’s FedWatch Tool predicts that the Federal Reserve will cut borrowing prices by 25 basis points next month, sending US bond yields to a one-week low.
The XAUUSD expected to rise as major central banks decrease interest rates and geopolitical uncertainties emerge.
The US Dollar extended its well-established uptrend that began earlier this month, reaching its highest level since early August, although this did little to deter XAUUSD bulls.
According to recent statements from executives at the London gold Market Association’s annual conference, central banks are still interested in buying gold to diversify their holdings. Financial or strategic motives.
United Nations (UN) reported that Israeli forces fired on its peacekeeping post in southern Lebanon.
The United Nations (UN) reported that Israeli forces fired on its peacekeeping post in southern Lebanon, forcibly entered a facility, halted a key logistical operation, and injured more than a dozen of its troops.
According to a person acquainted with the situation, Israel’s response to Iran’s October 1 attack is ready, raising the prospect of further escalation of geopolitical tensions and a full-fledged Middle East war.
During a press event on Thursday, China’s housing minister announced that the government will add 1 million village urbanization projects and implement monetisation procedures for them.
Later during the early North American session, traders will take cues from the US economic docket, which includes the release of Retail Sales, Weekly Initial Jobless Claims, and the Philadelphia Federal Manufacturing Index.
Furthermore, the ECB’s monetary policy decision may increase market volatility and deliver a significant boost to the safe-haven precious metal, allowing traders to seize short-term opportunities.
