Gold rises 1% as bets on a US interest rate hike recede
Gold rose by about 1% on Wednesday, supported by declining expectations that the US Federal Reserve (the central bank) would raise interest rates next month, as investors await key US inflation data that could reshape mo
Translated by Qiyas from السياسة — Original source
Gold rose by about 1% on Wednesday, supported by declining expectations that the US Federal Reserve (the central bank) would raise interest rates next month, as investors await key US inflation data that could reshape monetary policy expectations.
Spot gold rose 0.9% to $4,406.34 per ounce by 03:30 GMT, while US December gold futures climbed 0.6% to $4,466.70.
Gold had risen to its highest level in 10 weeks on Tuesday before encountering technical resistance at the 100-day moving average, around $4,387, before recording a decline at settlement for the second time this month, according to Reuters.
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Kelvin Wong, chief market analyst at OANDA, said the main driver for gold is the declining expectation of a Federal Reserve interest rate hike.
According to the CME Group’s FedWatch tool, traders currently price in a 50% probability of an interest rate hike in September, down from 60% before the jobs report was released.
In other precious metals markets, spot silver rose 1.2% to $65.46 per ounce, trading below its highest level since June 22, which it reached on Tuesday. Platinum rose 0.6% to $1,754.10, while palladium increased 0.8% to $1,370.86.
