Gold prices rose during these moments of trading, today, Monday, supported by a noticeable decline in the dollar index, as investors look forward to US inflation data that could determine the Federal Reserve’s moves regarding interest rates in the coming period.
Gold and dollar now
Gold futures rose 0.47% to $1,952 an ounce.
While spot gold contracts rose by 0.48% to $1,928 per ounce.
On the other hand, the dollar index fell by 0.5% to 104.189 points.
Gold at settlement on Friday
Gold futures prices stabilized at the end of the last session of last week, on Friday, with the stability of the dollar index, which reached its highest levels in six months yesterday, and with markets awaiting more evidence about the future of interest rates.
At the close of the Friday session, the prices of yellow metal contracts for December delivery settled at $1942.7 per ounce, while its weekly losses amounted to 1.25%.
Matt Maley, chief market strategist at Miller Tabak, told Bloomberg that buying orders for the dollar have peaked and are ready to decline.
He added that optimism regarding the possession of the dollar has reached a record level, and that it cannot rise more than that in the short term at least, warning traders in the short term against betting on the rise of the American currency.
George Milling-Stanley, chief gold market analyst at State Street, believes that investors' demand for gold as a safe haven alongside the dollar is what supports its price.
Dollar and bonds fall, gold rises
Matt Simpson, chief analyst at City Index, said gold could get support above the $1,900 level if we see the US dollar continue to fall on bets that the Fed has already finished its tightening cycle, and the possibility that they will cut interest rates at some point. Closer than expected.
He added: Gold found support around its 200-day moving average, which is an important technical level that is not easy to break, adding that if US inflation declines, this could greatly affect the US dollar.
Meanwhile, spot gold may retest resistance at $1,930 an ounce, according to Reuters technical analyst Wang Tao.
While yields on the US dollar and benchmark 10-year bonds fell by 0.3%, making non-yielding bullion more attractive to foreign buyers.
“The precious metal will likely rely on declining bond yields in order to surpass the $1,950 level again,” Tim Waterer, senior trading market analyst at KCM, said in a note.
Markets are awaiting the emergence of new data on the inflation rate in the United States on September 13, days before the Federal Reserve meets to approve the interest rate on September 20.
August US Consumer Price Index (CPI) data is expected to shape Federal Reserve interest rate decisions this year.
Before this month's policy-setting meeting, Fed policymakers were quite clear about two things: They are not eager to raise interest rates, but few are willing to also declare victory over inflation.
other metals
Spot silver rose 0.5% to $23.02 an ounce, platinum rose 0.4% to $896.16 after a 7% drop last week, while palladium rose 0.5% to $1,203.68.