Gold continued to rise during today’s trading due to the intensification of the Russian-Ukrainian war and the anticipation of a decision by the Federal Reserve regarding US interest rates, while the dollar stopped its rise while awaiting clarification of the economic policies of US President-elect Donald Trump.
gold
Gold prices rose today for the fourth session in a row, supported by increased demand for safe havens amid the intensification of the Russian-Ukrainian war, at a time when investors are awaiting indicators of interest rates in the United States.
Spot gold contracts increased 0.71%, recording $2,669.11 per ounce at the time of writing this report, and US gold futures contracts rose 0.72%, recording $2,669.61 per ounce.
Yesterday, Wednesday, Ukraine launched a barrage of British Storm Shadow missiles at Russia, which is the latest new Western weapon that it is allowed to use against targets deep inside Russia, a day after it launched American Atakum missiles.
The United States also vetoed a UN Security Council resolution calling for a ceasefire in Gaza, which increased geopolitical tensions.
CME Financial Services’ FedWatch Index said markets now see a 54% chance of a 25 basis point cut in interest rates in December.
As for other precious metals:
- Silver increased 1.12%, recording $31.20 per ounce.
- Platinum rose 0.17% to $964.58 an ounce.
- Palladium rose 1.43% to $1,040.20.
Dollar
The dollar’s rise stopped amid efforts to clarify the features of the policies proposed by Donald Trump and the US Central Bank’s decision regarding interest rates.
The dollar index fell 0.06%, recording 106.62 points, but retained most of the gains of the previous session after last week approaching its highest level in a year against a basket of currencies at 107.07.
A poll conducted by Reuters showed that most economists expect the Federal Reserve to cut interest rates at its meeting in December, and to approve smaller cuts in 2025 compared to expectations issued a month ago due to the risk of rising inflation as a result of Trump’s policies.
The dollar has increased by more than 2% since Trump won a batch of bets that his policies will stoke inflation and limit the next steps of the US Central Bank to reduce interest rates.
- The euro fell slightly by 0.08%, recording $1.0536, after falling 0.5% yesterday, returning towards the lowest level against the dollar since October 2023, which it recorded last week and reached $1.0496.
- The British pound fell 0.079%, recording $1.2639.
- The dollar gave up its gains against the yen after those statements, falling 0.57% to 154.52 yen.
Bank of Japan Governor Kazuo Ueda said Thursday that the central bank will take exchange rate movements into account as it prepares its forecasts for the economy and prices.
