Gold prices bounced off the nine-month lows they ended at last week as the highflying dollar cooled a bit on Monday.
Gold futures slid Friday to their lowest finish since February. The yellow metal was undercut by dollar strength and growing expectations that the Federal Reserve will not only announce an interest-rate increase at its meeting in December but could also signal a quicker pace of rate hikes next year. This sentiment pulled prices for the metal down for a second consecutive week.
But early Monday, gold futures for December delivery GCZ6, +0.52% rose $6.50, or 0.6%, to $1,215.60 an ounce. Gold settled at $1,208.70 Friday, ending about 1.3% lower for the week. The settlement was the lowest since mid-February, according to FactSet data.
The ICE U.S. Dollar Index DXY, -0.56% fell 0.4% after rising on Friday for a 10th straight day to hit 101.54, its highest since April 2003.
“Bets on a steeper Fed rate hike path after the U.S. presidential election have undermined demand for anti-fiat and non-interest-bearing assets,” including gold, said Ilya Spivak, currency analyst with Daily FX. “A lull in top-tier news flow may allow for a corrective retracement in the week ahead, but prices will probably remain highly sensitive to headline risk as the [President-elect Donald] Trump cabinet takes shape.”
via MarketWatch
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019