Gold Prices Surge on Weaker Dollar and Fed Policy Optimism
Gold prices reached a nearly one-month high on Thursday, buoyed by a weaker U.S. dollar following optimistic U.S. inflation data. The data raised hopes that the Federal Reserve would soon halt its tightening of monetary policy.
At 0241 GMT, spot gold (GOLD) rose 0.1% to $1,959.79 per ounce, marking its highest level since June 16. U.S. gold futures also increased by 0.1% to $1,964.30.
In June, U.S. consumer prices experienced a modest rise and recorded the smallest annual increase in over two years. Although inflation continued to decrease, it was likely not at a fast enough pace to dissuade the Federal Reserve from resuming interest rate hikes later in the month.
Consequently, the focus remains on the central bank's upcoming rate-setting meeting, which could have a significant impact on gold prices in the short term, according to Brian Lan, a representative from Singapore dealer GoldSilver Central.
Gold has faced downward pressure recently due to hawkish comments from policymakers, resulting in a decline of over $100 from its peak in May. Higher interest rates increase the opportunity cost of holding non-yielding gold, even though it is considered a safe investment during periods of political and financial uncertainties.
Lan further suggested that while gold could potentially reach the $2,000 mark, the chances of prices declining in this quarter are more likely, making $1,800 a possibility. He also added that the Federal Reserve could adopt a "cautious tone."
In the broader financial market, Asian shares and bonds rallied as well, following speculation that the post-pandemic tightening cycle may be approaching its end, prompted by U.S. inflation.
Investors are now keeping an eye on U.S. initial jobless claims and the Producer Price Index report, which are scheduled to be released later in the day.
XAUUSD
SELL 1960 - 1962 💯💯
✅ TP1: 1956
✅ TP2: 1951
✅ TP3: 1946
🛑 SL: 1966
At 0241 GMT, spot gold (GOLD) rose 0.1% to $1,959.79 per ounce, marking its highest level since June 16. U.S. gold futures also increased by 0.1% to $1,964.30.
In June, U.S. consumer prices experienced a modest rise and recorded the smallest annual increase in over two years. Although inflation continued to decrease, it was likely not at a fast enough pace to dissuade the Federal Reserve from resuming interest rate hikes later in the month.
Consequently, the focus remains on the central bank's upcoming rate-setting meeting, which could have a significant impact on gold prices in the short term, according to Brian Lan, a representative from Singapore dealer GoldSilver Central.
Gold has faced downward pressure recently due to hawkish comments from policymakers, resulting in a decline of over $100 from its peak in May. Higher interest rates increase the opportunity cost of holding non-yielding gold, even though it is considered a safe investment during periods of political and financial uncertainties.
Lan further suggested that while gold could potentially reach the $2,000 mark, the chances of prices declining in this quarter are more likely, making $1,800 a possibility. He also added that the Federal Reserve could adopt a "cautious tone."
In the broader financial market, Asian shares and bonds rallied as well, following speculation that the post-pandemic tightening cycle may be approaching its end, prompted by U.S. inflation.
Investors are now keeping an eye on U.S. initial jobless claims and the Producer Price Index report, which are scheduled to be released later in the day.
XAUUSD
SELL 1960 - 1962 💯💯 ✅ TP1: 1956
✅ TP2: 1951
✅ TP3: 1946
🛑 SL: 1966
Comment:
Go to Entry and enter the command
Comment:
+50pips ✅✅
Comment:
Gold is on the right track
Comment:
SELL again
Comment:
BUY LIMIT 1935 - 1937 💯💯
✅ TP1: 1942
✅ TP2: 1947
✅ TP3: 1952
🛑 SL: 1930
✅ TP1: 1942
✅ TP2: 1947
✅ TP3: 1952
🛑 SL: 1930
Comment:
Gold maintains its gains as the US CPI data reveals a softer outlook.
