11/28/2023 – 16:09
The most liquid gold futures contract closed higher this session, favored by the slowdown in Treasury interest rates and the fall of the dollar against rival currencies.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in February 2024 closed up 1.34%, at US$2,060.20 per troy ounce.
Commerzbank highlights that gold is already one of the best-performing exchange-traded commodities this year. “It is true that gold also suffered some weak moments in the meantime – its price fell to almost US$1,800 per troy ounce in late February and early October. However, gold was able to quickly recover these losses thanks to the turmoil in several US regional banks in March and the escalation of the conflict in the Middle East in October.”
Furthermore, the German bank highlights that a change in market expectations regarding US Fed interest rates appears to be mainly responsible for the recovery and resilience of gold to downward factors, such as rising Treasury yields and slowing inflation. “The crucial question now is when and how sharply the Fed will cut interest rates next year.”
TD Securities, in turn, highlights that an expected positioning of more dovish comments from the Fed and a search for the metal should drive prices to US$2,100 per troy ounce in a “sustained manner” in 2024. “As the precious metals environment becomes favorable, silver is also projected to perform well.”
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