Oct 14, 2022
VOT Research Desk
By 0641 GMT, spot gold increased 0.3% to $1,670 per ounce. Over 1% has been lost in price so far this week.
At $1,676.60, U.S. gold futures were unchanged.
Gold prices increased on Friday, helped along by a decline in the dollar and Treasury yields. However, bullion was still on track for a weekly decline due to the possibility of additional excessive U.S. Federal Reserve rate hikes.
While benchmark U.S. 10-year Treasury yields were below a 14-year peak reached on Thursday, the dollar index decreased by 0.2 percent, making bullion less expensive for buyers from outside the United States. According to SPI Asset Management managing partner Stephen Innes, “Gold is stuck between not seeing a pivot any time soon but there is a light at the end of the tunnel here in the sense that the Fed might pause.
Gold is more likely to rise than fall in the medium term. The global economies will experience negative outcomes, which may eventually tip the balance in favor of rate cuts.
Thursday’s data showed that consumer prices in the United States went up more than expected in September. This strengthened the case for a fourth 75-basis-point rate increase at the end of the Fed’s meeting on November 1-2, driving gold lower for the session.
Since bullion does not pay interest, interest rate hikes to control soaring prices have diminished its appeal, despite the fact that it was once regarded as a protection against inflation and economic turmoil.
Due to aggressive monetary policy tightening and a stronger dollar, ANZ analysts anticipate that gold prices will fall to $1,600/oz by the end of the year.
The price of an ounce of spot silver rose by 0.8 percent to $19.01, but it was on track for its biggest weekly decline since August.
Palladium rose 0.8 percent to $2,125.18 while platinum rose 1 percent to $904.77.The price of both metals was about to plunge for the first time in three
Indicators
Gold Futures (Daily)
|
Name |
Value |
Action |
|
RSI(14) |
43.301 |
Sell |
|
STOCH(9,6) |
42.344 |
Sell |
|
STOCHRSI(14) |
48.368 |
Neutral |
|
MACD(12,26) |
-8.990 |
Sell |
|
ADX(14) |
37.722 |
Sell |
|
Williams %R |
-55.965 |
Sell |
|
Name |
Value |
Action |
|
CCI(14) |
-32.0517 |
Neutral |
|
ATR(14) |
27.8071 |
Less Volatility |
|
Highs/Lows(14) |
0.0000 |
Neutral |
|
Ultimate Oscillator |
51.204 |
Buy |
|
ROC |
2.638 |
Buy |
|
Bull/Bear Power(13) |
-28.5459 |
Sell |
|
Buy:2 |
Sell:6 |
Neutral:3 |
Indicators Summary: Strong Sell |
