Gold Prices to Rise Weekly

22 Nov 2024 , 10:24 AM

As the market anticipated more precise indications regarding the U.S. interest rate future, gold prices remained stable on Friday but were still on track for a weekly rise due to demand for safe haven assets brought on by growing geopolitical fears.

Spot gold was up more than 4% for the week and barely changed at $2,669.99 per ounce. In the previous session, the price of gold reached a high of more than a week.

The price of U.S. gold futures dropped 0.1% to $2,672.00.

Indicating that job creation has recovered after being hampered by storms and labour strikes last month, data released on Thursday showed that weekly initial jobless claims fell 6,000 to a seasonally adjusted 213,000, a seven-month low, and below the 220,000 estimate of economists surveyed by Reuters.

In a fresh escalation of the 33-month-old conflict, Russia launched a hypersonic intermediate-range ballistic missile towards the Ukrainian city of Dnipro on Thursday in retaliation for the United States and the United Kingdom permitting Kyiv to attack Russian territory with cutting-edge Western weapons.

When interest rates are lower and there is geopolitical unpredictability, non-yielding assets like bullion do well.

On Thursday, Austan Goolsbee, the president of the Chicago Federal Reserve, reaffirmed his support for additional interest rate decreases and his willingness to slow them down.

According to the CME Fedwatch tool, traders now anticipate a 58% chance of a 25 basis point rate drop in December.

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