Gold prices edged higher on Wednesday (October 16), briefly breaking above $2,680, less than $5 from an all-time high, while the dollar remained firm.
Market participants await more United States economic data to determine the number of rate cuts the Fed is likely to implement in the near term.
Spot gold rose 0.6% to $2,680, hitting as high as the 2,682 level, less than $5 from its all-time high set last month. The trading day rose by more than $15, and the intraday volatility was more than $20.
The U.S. dollar held steady at its highs, extending its recent weeks rally as traders expected a modest Fed rate cut and they thought former President Donald · Trump could win the election — seen as positive for the dollar.
In addition, the yield on the 10-year United States Treasury note fell for the third consecutive session, making non-yielding gold more attractive to investors.
Separately, representatives of the annual meeting of the London Bullion Market Association forecast a rise in the price of gold to $2,941 and a price of silver to $45 in the next 12 months.
In the author’s opinion: Market participants are closely watching the United States retail sales, industrial production and weekly jobless claims data released on Thursday.
Gold’s expected data to change the trajectory of interest rate cuts, which will spur investment demand and push prices to record highs in the coming months.
At 21:10 Hong Kong time, spot gold was at $2,681.60 an ounce.
Author: Zhou Tong (Analyst) 16-10-2024
#The above is only the author’s personal opinion and has nothing to do with the company’s position.
#The policy recommendations are for informational purposes only, there are risks in entering the market, and investment needs to be cautious.