02/12/2024 – 15:59
Gold closed lower this Monday, 12th, as the market ponders the Federal Reserve's (Fed) next monetary policy steps. Earlier, the director of the American BC, Michelle Bowman, stated that she does not see cuts in the “immediate future”.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in April closed down 0.28%, at US$2,033.00 per troy ounce.
Gold prices fell for the third session in a row. According to ING, the metal has received recent support from demand for safe assets, but the lack of clarity about the start of monetary easing by the Fed is limiting the possibility of a rally.
In the morning, Bowman acknowledged that inflation had made satisfactory progress, but warned that “there are still many risks on the horizon”. “It is too early to prejudge whether this will affect the economy and I do not see cuts as appropriate in the immediate future,” she said, adding that it is not yet possible to project when the cuts will begin and how large the rate reduction will be.
However, TD Securities analyzes that investors are under-positioned in relation to the metal and predicts that there is room for a “substantial rise” in gold prices on the horizon, if the market pricing for Fed interest cuts materializes.
*With information from Dow Jones Newswires
#Gold #closes #ahead #Fed #interest #rate #considerations
