Gold prices on track for second weekly loss on higher global interest rates
1 year ago

Gold prices declined in European trade for another session, almost hitting 29-month lows and on track for the second weekly loss in a row as global central banks continue to tighten their monetary policies and hike interest rates, hurting demand on non-yielding assets such as gold. 


US 10-year treasury yields surged to 12-year highs after the Federal Reserve raised rates by 75 basis points to 3.25%, the highest since 2008.


Prices Today


Gold prices fell 0.4% to $1,665 an ounce, after losing 0.2% yesterday, hovering near 29-month lows at $1,653.


Gold is down 0.6% so far this week and on track for the second weekly loss in a row on higher interest rates. 


Global Central Banks


As expected the Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.


The Fed intends to maintain its bullish stance against inflation, raising rates to 4.5% by the end of the year, which means we have 125 basis points of rate hikes in the last two meetings of the yer.


The Fed is aiming for the neutral 4.75% level for interest rates, which means raising rates by just 25 basis points in 2023.



Jerome Powell


Fed Chair Jerome Powell said his message hasn't change since Jackson Hall, with the Federal Open Market Committee aiming to cut inflation 2% through aggressive policy tightening until it's done.


Swiss National Bank


Swiss National Bank decided at its September 22 policy meeting to increase interest rates by 75 basis points to 0.5%, returning to positive ground for the first time since 2011, matching analysts expectations, and it's the first such hike since 2007.


Otherwise, Bank of England also voted to increase interest rates this week by 50 basis points to 2.25%, the highest since 2008.


US Yields


US 10-year treasury yields rose 0.5% on Friday to 12-year highs at 3.738%, and potentially are heading for 4%. 




Gold holdings at the SPDR Gold Trust fell 2.03 tones yesterday, the fifth such decline in a row to a total of 950.13 tones, the lowest since March 2020.

Commodities News

Oil News


Which side will be more damaged if oil prices hit $100 a barrel?
1 day ago
Crude oil prices continue to gather momentum, propelled by voluntary production cuts by Russia and ...
Palladium News


Palladium drops over 1% even as dollar loses ground
1 day ago
Palladium prices declined on Friday even as the dollar lost ground against most major ...
Oil News


Oil gains ground amid Chinese vacation demand and lower US supplies
1 day ago
Oil prices rose on Friday while heading for a 3% weekly profit on lower US supplies and ...

Commodities Technical Analysis

Brent oil Analysis


Midday update for Brent oil 29-09-2023
1 day ago
The tight range dominates brent oil price trades since morning, thus, the bearish trend scenario ...
Oil Analysis


Midday update for Crude oil 29-09-2023
1 day ago
Crude oil price didn’t show any strong move since morning, to fluctuate around 92.00 level, ...
Silver Analysis


Midday update for Silver 29-09-2023
1 day ago
Silver price provides additional positive trades to attack 23.00 level, and we need to monitor the ...