After it was in a downward range at the beginning of today’s trading, gold prices turned upward during these moments of trading, today, Thursday, despite calming concerns about the global banking system, as this fluctuation in prices coincides with the Fed’s statements yesterday regarding interest and the banking crisis. .
Meanwhile, markets are awaiting the US GDP and US Unemployment data, which are due for release today.
Traders are also looking forward to the Fed's favored inflation data, as US PCE data is scheduled to be released on Friday, in search of more clues on monetary policy.
Gold and the dollar now
Spot gold rose 0.2% at $1,968 an ounce.
While US gold futures rose 0.1% to 1986 dollars.
The dollar index decreased by 0.15%, to record 102.17 points.
gold when settling yesterday
Gold prices settled lower on Wednesday, as worries about the banking system subsided.
Gold futures contracts for June delivery fell by 0.3%, equivalent to $5.90, to reach $1984.50 an ounce upon settlement.
Does gold continue its decline?
Michael Langford, director at Air Guide Corporate Consulting, said: In the short term, profit-taking and easing fears of further contagion among banks would lead to a continued decline in the price of gold towards $1920 an ounce.
Matt Simpson, senior market analyst at City Index, said: We are witnessing a natural bounce.. Gold is retreating after a failed attempt to break the $1975 barrier, but he added that some investors still seem to be holding on to gold in anticipation of other hidden things in the markets.
Gold rose above $2,000 after the sudden collapse of two US banks this month, but it has given up gains since then as authorities intervened with rescue measures, such as UBS' acquisition of troubled Credit Suisse and First Citizens Bankers' purchase of collapsed Silicon Valley bank.
However, analysts at ANZ said in a note that the yellow metal has held up relatively well in the face of adverse conditions.
Analysts added: Gold continues to see strong inflows into ETFs. SPDR gold share volumes, the largest gold-backed exchange-traded fund (ETFs), rose to their highest level since October.
Federal statements hours ago
Fed Vice Chairman Michael Barr said Wednesday night that the Fed will make its interest rate decisions from here on a meeting-to-meeting basis and will take financial conditions into account in that judgment along with other factors.
We will look at the data received, Barr told the House Financial Services Committee, on the second day of hearings on the collapse of Silicon Valley Bank. We will be looking at the changing financial circumstances, and will make a judgment on a meeting-by-meeting basis on this decision.
He reported that the Federal Reserve had set the mood well ahead of proceeding with the large interest rate hikes it had implemented over the past year, so no bank's management should have been surprised.
Barr said that they will review the ratings of the banks and decide whether they should downgrade this bank. However, Barr considered that the Fed had the authority to supervise the companies in an appropriate manner. Bar considered that dealing with the crisis in a gradual manner is the best option.
Barr went on to say that despite all of the above, strengthening the capital and liquidity of banks with $100 billion in assets is a required measure.
