Gold regaining bullish momentum as investors anticipate that US interest rates have peaked.
The first day of a new week, the gold price (XAUUSD) attracts some dip-buying near $1,973. And halts Friday’s minor pullback from a two-week high. The precious gold is currently trading slightly around $1,985 per ounce, up almost 0.20% on the day. It is ready to expand on its recent positive bounce from the monthly low reached last Monday. As a result of dovish Federal Reserve (Fed) predictions.
There is a growing consensus. That the Fed will Maintaining the status quo at its December 2023 meeting. And eventually beginning to lower interest rates in 2024 may keep the US Dollar (USD) near its lowest level since September 1. Apart from that, the worsening global economic outlook, along with geopolitical risks. Appears to be another reason supporting the safe-haven Gold price and stays supportive of the rising trend.
However, it remains to be seen whether bulls can maintain control or decide to remain on the sidelines. Ahead of the FOMC meeting minutes publication on Tuesday. Investors will obtain a new perspective on the course of interest rates as well as policymakers’ thoughts on whether the US Federal Reserve should raise interest rates again this year. As a result, there should be some The non-yielding Gold price has seen a significant boost.
Daily Digest Market Movers: The gold price continues to be supported by a number of factors.
The gold price is still being supported by rising predictions that the Federal Reserve (Fed) would not raise interest rates, despite signals that the high-priced nightmare has ended.
Last week’s US CPI report indicated that consumer inflation was falling quicker than expected, while last Thursday’s US Jobless Claims indicated a cooling labor market.
Markets appear to be convinced that the Fed will leave rates steady at its December 2023 policy meeting, and they are pricing in roughly 100 basis points of rate decreases by the end of 2024.
A shift in expectations for future Fed policy actions drove down the benchmark 10-year US Treasury note. On Friday, yields fell to a two-month low, benefiting the non-yielding metal.
The US Dollar is near its lowest level since September. Which is considered as another factor supporting the XAUUSD ahead of the FOMC minutes on Tuesday.
The escalation of violence between Israel and Hamas has raised fears about the global economy possible impact. Which, in the worst-case scenario, may force it into recession.
Israel and the United States dismissed rumors of a possible breakthrough in negotiations. With Hamas to liberate some of the 240 hostages in Gaza in exchange for a five-day cease-fire.
