7/10/2024–|Last updated: 10/7/202405:22 PM (Mecca time)
Both gold and the dollar stabilized during trading on Tuesday, amid expectations that the Federal Reserve (the US central bank) will reduce the interest rate at a lower rate next month, while investors await the inflation data that is scheduled to be issued this week, in search of more indicators regarding easing monetary policy. .
US jobs data released on Friday and the escalation of the war in the Middle East played a role in offsetting the pressure factors on gold.
gold
Gold rose today in spot transactions by 0.1% to $2,655 per ounce, at the time of writing this report, but it is far from a record peak of $2,685.42, recorded on September 26, and US gold futures rose today by 0.37% at $2,677.80.
The market is now awaiting the minutes of the latest Federal Reserve monetary policy meeting and the US consumer and producer price index data scheduled for release this week.
Carlo Alberto de Casa, a money market analyst at Kinesis, said: “The CPI data scheduled for release this week is important in predicting what the Federal Reserve will do, but I do not imagine a surprise because the market already expects almost 100% that the Fed will (cut) the interest rate by 25 points.” Basis only.
Traders now see a 95% probability that the US Federal Reserve will cut interest rates by only a quarter of a percentage point next month, after a jobs report indicated the strength of the US economy, which will likely prompt the Federal Reserve not to make major cuts in interest rates until the end of this year. .
“Geopolitical risks in the Middle East may support flows towards the yellow metal as a safe haven, which limits the downside resulting from market expectations for less easing,” said IG market analyst Yip Jun Rong.
As for other precious metals, silver fell in spot transactions 1.1% to $31.84, platinum lost 0.62% to $981.65, while palladium rose 1% to $1,021.83.
Currencies
On the currency front, the yen rose slightly to 148.19 against the dollar, after reaching its lowest level since August 16 during the day.
This came after a decline of more than 4% last week, recording its largest weekly decline since early 2009.
The dollar rose after the US jobs report showed the largest jump in 6 months in September, a decline in the unemployment rate and a strong increase in wages, which indicates the strength of the US economy and forces markets to reduce their expectations that the Federal Reserve will lower interest rates.
The dollar index, which measures its performance against 6 other major currencies, rose 0.5% on Friday to its highest level in 7 weeks, bringing its gains to more than 2% during the week, the highest in two years.
The euro settled today at $1.097, down 0.018%.
The pound sterling stabilized in today’s trading at about $1.3068 after a 1.9% decline last week, its largest decline since early 2023.
