Gold prices gain ground for third straight session

Economies.com
4 days ago

Gold prices rose in European trade on Monday for the third straight day, almost hitting a two-week high as the dollar slows down against a basket of major rivals.

 

The gains come ahead of the Federal Reserve's policy meeting this week, expected to pause interest rate hikes in order to assess US economic conditions. 

 

The Federal Reserve's policy decisions and statements, in addition to Fed Chair Jerome Powell's statements afterwards will provide clues on the likely path ahead for policies, especially in November.

 

Gold Prices Today

 

Gold prices rose 0.35% to $1,930 an ounce, with a session-low at $1,922, after rising 0.7% on Thursday, the second profit in a row away from a three-week low at $1,901, as the dollar stalls.

 

Gold prices rose 0.25% last week, the third weekly profit in a month, as the battle of major central banks with inflation approaches an end, with the European Central Bank hinting that interest rates have peeked out. 

 

The Dollar

 

The dollar index fell 0.1% on Monday, extending losses for the second session off six-month highs against a basket of major rivals.

 

Dollar declined ahead of the Federal Reserve's policy meeting later this week, expected to end with no change in policies. 

 

The Fed

 

Advertistment

The Federal Reserve is holding its two-day policy meeting tomorrow, widely expected to end with maintaining interest rates unchanged at 5.5%, the highest in 22 years.

 

US Rates 

 

Current pricing for a 0.25% Fed interest rate hike this week stands at 1%, while pricing for a 0.25% interest rate hike at  the November meeting stands at 28%. 

 

Estimates

 

Analysts believe that gold prices are carrying strong momentum as global central bank pull back from their policy tightening marathons.

 

Future US and European data especially on consumer prices and retail sales will offer more clarity on this issue. 

 

Chinese Gold Prices

 

Gold prices in China hit record highs last week as consumers buy up the safe haven to compensate the declining yuan values. 

 

The SPDR

 

Gold holdings at the SPDR Gold Trust rose 0.57 tonnes on Friday to a total of 880.27 tonnes, away from January 2020 lows at 879.7 tonnes. 

Commodities News

Oil News

Commodities

Is that the real reason behind Saudi Arabia's crude production cuts?
11 hours ago
Saudi energy minister Abdulaziz bin Salman Al Saud said this week about the recent Saudi and ...
Palladium News

Commodities

Palladium declines as dollar muscles up amid global inflation concerns
12 hours ago
Palladium prices fell on Friday as the dollar gained ground against most major rivals and amid ...
Oil News

Commodities

Oil prices climb for second straight day
15 hours ago
Oil prices rose in European trade on Friday for the second session on track for ten-month highs ...

Commodities Technical Analysis

Brent oil Analysis

Commodities

Midday update for Brent oil 22-09-2023
18 hours ago
Brent oil price resumes its positive trading to approach our first waited target at 94.80, waiting ...
Oil Analysis

Commodities

Midday update for Crude oil 22-09-2023
18 hours ago
Crude oil price shows new positive trades to move above 91.00 barrier now, reinforcing the ...
Silver Analysis

Commodities

Midday update for Silver 22-09-2023
18 hours ago
Silver price managed to achieve our waited target at 23.70 and attempts to breach it, to support ...