Gold is expected to close in green for the first time in three weeks due to potential Fed pause

17 Nov 2023 , 09:32 AM

With investors growing more certain that the U.S. Federal Reserve is done hiking interest rates, gold prices increased somewhat on Friday, heading for their first weekly rise in three weeks. This is due to the decreased value of the dollar and Treasury yields.

 Spot gold was up 0.2% at $1,984.26 an ounce, having reached its highest level since Nov. 6 during the previous session. Gold futures in the US were stable at $1,987.

This week, gold has increased by 2.5% thus far.

While 10-year Treasury note yields were close to two-month lows, the dollar was expected to decline this week, which would make gold more affordable for buyers holding other currencies.

The Fed’s battle against inflation may be aided by the fact that more Americans than anticipated filed new claims for jobless benefits last week.

According to statistics released on Tuesday, headline consumer prices in the United States fell in October despite forecasts of a 0.1% increase. The core CPI, which was 0.2%, was less than the 0.3% prediction.

Market players have revised their expectations for future Fed action in response to the slowing labour market and weaker-than-expected consumer inflation statistics.

According to the CME FedWatch tool, traders currently mostly anticipate that the Fed will keep interest rates steady at its policy meeting on December 12–13.

Holding gold has a lower opportunity cost when interest rates are lower.

At $23.83 an ounce, spot silver increased 0.6%, while platinum was unchanged at $892.58. Palladium dropped 0.2% to an ounce for $1,035.77.

For feedback and suggestions, write to us at [e-mail]