Gold prices drop nearly 1% as central bankers hint at further rate hikes ( #0bb54c1b , v0.7)

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Gold prices have dropped nearly 1% as central bankers suggest further interest rate hikes. The decrease in gold prices is attributed to the diminishing geopolitical risk premium. Federal Reserve officials have commented on the current monetary policy, leaving room for additional rate hikes if inflation levels warrant them. The Federal Reserve is hosting a conference featuring Chairman Powell, Vice Chair Jefferson, and John C. Williams. Chairman Powell emphasized the need for economic models to be flexible in accounting for unknown variables. Gold futures for the most active December contract are down 0.89% at $1956. This marks the third consecutive day of substantial value loss for gold. The recent decline in gold prices is attributed to the shift in focus from geopolitical risk to the Federal Reserve's monetary policy. Technical analysis suggests that there is no major support until $1945, the 38.2% Fibonacci retracement. The rise in gold prices in October was driven by geopolitical events, but now traders are taking profits as the risk premium has been factored into the price. The content provided on the website is for educational and research purposes only and should not be considered as investment advice. The website also includes information about cryptocurrencies and CFDs, highlighting the high risk associated with these instruments.

Gold prices remain stable around the $2,000-per-ounce mark following the release of weak US jobs data. The market interprets this as a sign that the Federal Reserve may not raise interest rates further, leading to a decline in the value of the dollar and bond yields. The decline in the US dollar and the drop in Treasury yields reinforced a bullish outlook for gold. The convergence of slower job growth, possible Fed restraint, a retreating dollar, and regional stability suggests further price gains for gold in the near term. Gold prices continue to trade near the $2,000 level, lacking solid conviction to break higher. The risk remains tilted to the upside as US yields pull back. However, as fundamental factors still favor the US economy over other economies, the Greenback could see its losses limited, which in turn, would keep XAU/USD at risk of sharp corrections. Economic reports, central bank decisions, and the US official employment report were released. The Federal Reserve acted as expected, remaining data-dependent. Economic data from the US showed that Initial Jobless Claims reached their highest level in seven weeks, while Continuing Claims rose to levels not seen since April. The economy added 150,000 jobs in October, below the market consensus of 180,000. The Unemployment Rate also rose from 3.8% to 3.9%. The Reserve Bank of Australia (RBA) will be the only central bank decision next week. Gold prices have lost some bullish momentum after being unable to sustain above $2,000 and failing to break $2,010. The bias remains to the upside in the short term and on the weekly chart. The average price for next week is $2,005, and for one month, it is $1,999. The average price for a quarter ahead is $1,998. The gold price is struggling to regain upside traction as the US dollar sees a bit of relief in Asia. The positive global risk rally is extending into Asian trading, with investors cheering the increased odds of the US Federal Reserve being done with its rate-hiking cycle. The weak US Nonfarm Payrolls data release last Friday cemented expectations of no further interest rate hikes from the Fed. The gold price has formed a potential ascending triangle on the daily chart, with immediate support at $1,977. On the upside, acceptance above $2,000 is critical for a meaningful uptrend.

Gold prices strengthened as the US dollar weakened and Treasury yields retreated. The latest employment figures fell short of market forecasts, leading to speculation of a pause in interest rate hikes by the Federal Reserve.

Gold prices fell to a near two-week low as the dollar firmed and safe-haven demand slowed. Investors are awaiting comments from Federal Reserve officials, including Chair Jerome Powell, for more clarity on the interest rate outlook. The dollar rose 0.3%, making gold more expensive for other currency holders. Investors grew more confident that the Fed may be done with its rate hikes following soft U.S. October non-farm payrolls data. SPDR Gold Trust reported a rise in holdings. Spot silver, platinum, and palladium also fell.

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as investors wait for more interest rate policy clues from the Federal Reserve. The most active gold contract for December delivery fell 0.80 percent to close at $1,957.80 per ounce. Federal Reserve Chair Jerome Powell emphasized the need for the central bank to think beyond traditional economic forecasting methods. Federal Reserve Governor Lisa Cook warned that geopolitical tensions could worsen already subdued growth in Europe and China, potentially impacting the U.S. economy.

Gold prices are slightly higher after falling due to hawkish comments from U.S. Federal Reserve officials. Fed Gov. Lisa Cook warned that geopolitical tensions could worsen and contribute to inflation. Investors are awaiting further guidance from the Fed as there is no fresh economic data available. The rebound in short-term U.S. yields is also putting pressure on gold. Spot gold is currently up 0.2% at $1,954.28/oz.

#gold #FederalReserve #interestratehikes #geopoliticalrisk

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