iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Gold falls on Middle East unrest; emphasis is on Fed Chair Powell's speech

19 Oct 2023 , 09:53 AM

Amid growing unrest in the Middle East, investors’ appetite for gold increased on Thursday, pushing prices up to a level close to a two-and-a-half-month high. Additionally, investors were anticipating the speech of U.S. Federal Reserve Chair Jerome Powell later in the day.

Spot gold was up 0.2% at $1,950.83 an ounce, having reached its highest level since Tuesday, August 1. At $1,962.90, U.S. gold futures decreased 0.3%.

Frequently utilized as a secure asset during unstable political and economic periods, gold has increased by around $140, or 8%, since hitting a seven-month low on October 6.

Following recent dovish remarks from other Fed officials, the market will be watching Powell’s address to the Economic Club of New York for additional clues about the direction of U.S. interest rates.

Economists in a Reuters poll predict that the Fed will hold its benchmark interest rate on November 1 and may defer raising it longer than previously believed as the U.S. central bank’s higher-for-longer message gathers support.

In order to bring inflation back to the central bank’s 2% target, interest rates will need to remain high for some time, according to Fed Bank of New York President John Williams.

Because gold is priced in dollars and does not earn interest, higher rates increase the opportunity cost of owning the metal.

A Federal Reserve study released on Wednesday stated that while labour market tightness has continued to diminish and prices have increased modestly over the past month and a half, U.S. economic activity has not moved much.

Spot silver remained stable at $22.86, while palladium decreased by 0.2% to $1,126.86 and platinum fell by 0.3% to $883.07.

For feedback and suggestions, write to us at editorial@iifl.com

Pro and Con: Gold Standard | Britannica

Related Tags

  • FED
  • gold
  • Middle East
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.