Islam Saeed wrote
Friday, March 15, 2024 01:04 PM
The price per ounce is back Global gold To rise during today’s session, Friday, after the decline recorded yesterday due to US inflation data that may affect the Federal Reserve’s decision during the next week, so that the fluctuation in gold’s performance continues on its way to recording a weekly decline.
Has risen gold price The spot rose today by 0.3% to record the highest level at $2170 per ounce. It had opened today’s session at the level of $2162 per ounce and is currently trading at the level of $2168 per ounce.
Yesterday, gold fell by 0.6% and recorded the lowest level at $2,152 per ounce before bouncing up and closing at the level of $2,162. Gold is heading to record a weekly decline of 0.5% so far, which is the first weekly decline after three consecutive weeks of gains, according to Gold Billion analysis. .
Gold’s decline came after the Producer Price Index data showed an increase in inflation from the perspective of companies and manufacturers during the month of February by 0.6% from 0.3%, which reduced the chances of gold recording a further rise, failing to exceed the level of $2,180 per ounce.
This week both US consumer and producer prices rose more than expected in February, and consumer spending also showed some stability.
Higher inflation adds pressure on the Fed to keep interest rates high, affecting non-yielding assets such as gold, increasing the attractiveness of bonds and lifting the dollar.
The dollar rose to its highest level in more than a week after strong inflation readings this week, while traders are also preparing for the upcoming Federal Reserve meeting. On the other hand, the yield on 10-year US government bonds rose this week by 5% to record the highest level in two weeks. At 4.3%.
The rise in the dollar and government bond yields has a direct negative impact on gold, as it raises the opportunity cost of gold since gold does not provide a return to its holders.
On the other hand, traders reduced the chances of an interest rate cut at the Federal Reserve meeting in June to 61%, from about 75% last Friday, and the market expects about three interest rate cuts during 2024 after its previous expectations were between three to Four sales last Friday.
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