12/27/2023 – 15:55
The most liquid gold contract closed higher this Wednesday, 27th, renewing its historic high, driven by the fall in the dollar and interest rates on Treasuries, movements that give strength to the metal. The prospects for a Federal Reserve (Fed) monetary policy in 2024 have been putting pressure on both American assets. Furthermore, tensions in the Middle East remain on the radar, with the continuation of the conflict between Israel and Hamas presenting risks of escalation, a scenario in which gold appears as a safe haven.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in February 2024 closed up 1.12%, at US$2,093.10 per troy ounce.
A weaker dollar is helping to boost gold, says Peter Cardillo of Spartan Capital Securities. “Gold prices are rising as the dollar and falling yields pave the way for gold to close the year near its 52-week high,” says Cardillo. Today, the yield on the two-year Treasuries T-note touched its lowest since May.
“In addition to the reasons above, there is another factor that makes the market soar, which is the expansion of the war between Israel and Hamas”, he points out. Cardillo adds that these factors are expected to continue pushing prices higher at the start of the new year.
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