Gold rises amid optimistic Fed minutes
The value of gold on Thursday exceeded key levels amid the dollar’s weakening. The minutes from the latest meeting of the Federal Reserve indicated a growing number of members who support a slower pace of increasing interest rates.
Markets are now assessing the likelihood of a relatively smaller 50 basis point increase in central bank rates. Investing.com predicts that the expected hike should occur in December, which would be nearly 80%.
Markets will be paying attention to November's CPI inflation data, which will be released next month. The level of inflation decline will be evident from these readings.
Nevertheless, a small Fed rate hike will be beneficial to the metals markets going forward. That is because the sharp rise in interest rates has greatly increased the opportunity cost of holding non-interest bearing assets.
The issue of inflation is currently of less importance in the foreign exchange market. Thus, according to economists at Commerzbank, dollar bears will not suffer losses even on the release of optimistic nonfarm payrolls.
Yesterday at 12:16 PMObviously there has been a structural shift in the markets toward a bearish dollar position. According to economists at Internationale Nederlanden Groep (ING), current U.S. nonfarm payrolls data may not cause an inversion of this trend.
Yesterday at 12:10 PMEuropean Central Bank President Christine Lagarde stated that inflation expectations should not change. People should be confident that price growth will return to the target level.
Yesterday at 11:56 AMCentral banks have recently been stepping up measures to combat global inflation. Investors, meanwhile, are actively discussing the continuation of high price levels amid limited supply.
Yesterday at 11:30 AMThe focus is on the OPEC+ meeting and the entry into force of bans related to the import of Russian oil.
Yesterday at 12:59 PM