PRECIOUS-Gold marches ahead to the beat of a weaker US dollar

By Anjana Anil

Nov 21 (Reuters) Gold prices climbed above key $2,000 an ounce ceiling on Tuesday, buoyed by expectations that the Federal Reserve has concluded interest rate hikes, pressing the dollar, while investors awaited minutes from the US central bank’s latest meeting for further policy questions.

spot gold XAU= gained 1.5% to $2,006.37 per ounce, as of 9:56 am ET (1456 GMT), after earlier hitting $2,007.29, its highest level since Nov. 3. US gold futures GCcv1 gained 1.4% to $2,008.90.

“It looks like it’s short covering because of the weaker US dollar and also the fact that it doesn’t look like there’s going to be any more rate interest rate hikes here coming up on the horizon, so that’s bullish for gold,” said Bob Haberkorn, senior market strategist at RJO Futures.

The dollar =USD fell to more than a 2-1/2-month low, making gold less expensive for other currency holders.

Meanwhile, the benchmark US 10-year Treasury yields US10YT=RR hovered near two-month lows touched last week. USD/US/

The minutes from the Fed’s latest meeting are due at 1900 GMT, which could give further clarity on the central bank’s interest rate path.

“After the minutes come out this afternoon, if there’s anything about a pause on rate hikes, you could see (gold) steadily above $2,000” Haberkorn added.

Signs of slowing inflation in the US have increased expectations that the Fed has curbed rate hikes. Lower interest rates reduce the opportunity cost of holding gold.

“Now that concerns about the conflict in the Middle East have abated noticeably, the US interest rate outlook has regained the upper hand for gold,” Commerzbank said in a note.

Spot silver XAG= rose 2.4% to $23.96 per ounce, platinum XPT= gained 1.7% to $933.76, and palladium XPD= was up 0.4% to $1,081.99.

The global silver market faces a third consecutive year of supply deficit in 2023, the Silver Institute said last week.

Spot gold price in USD per oz

(Reporting by Anjana Anil in Bengaluru Editing by Marguerita Choy)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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