Gold extends gains on prospects of Fed rates

2022-11-24 10:13:21 GMT (Economies.com)
Gold extends gains on prospects of Fed rates

Gold prices rose in European trade on Thursday for the third session in a row amid support from the dollar against a basket of major rivals, following weak US data and the release of Fed's minutes. 

 

It's clear that Fed members are preparing for a slower pace of rate hikes, paving the way for a 0.5% rate hike in December. 

 

Gold Prices Today

 

Gold prices rose 0.5% to $1,758 an ounce, after rising 0.5% yesterday, the second profit in a row, moving away from two-week lows at $1,723 an ounce. 

 

The Dollar

 

The dollar index fell 0.4% on Thursday for the third straight session, moving towards three-month lows at 105.3 against a basket of major rivals. 

 

Weak Data

 

Recent US data showed industrial activities slowed down sharply for the first time in 2-1/5 years as increased interest rates hampered new orders. 

 

The data overall showed a decline in services and industrial activities in November for the fifth month in a row, a sign of recession. 

 

The Fed

 

Fed's minutes yesterday showed US policymakers are content about the slowdown in inflation, and are moving toward smaller rate hikes.

 

Fed Rates

 

Chances of a 0.5% rate hike rose from 75% to 85%, while chances of 75% rate hike fell from 25% to 15%.

 

The SPDR 

 

Gold holdings at the SPDR Gold Trust remained flat yesterday at 906.93 tones, the highest since November 14. 

 
 
 
  Symbol Last Change Chg.%
1.0510
-0.0080
0.7556%
1.2193
-0.0113
0.9172%
22.447
-0.710
3.066%
76.580
-4.895
6.008%
81.87
-0.62
0.75%
1776.210
-19.350
1.078%
 
 
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