2023-12-19 15:54:57
Gold futures prices continue to surge, approaching $2,060 today. The positive factor was the weakening of the dollar. and the fall in US government bond yields.
At 10:44 p.m. Thai time, gold contracts on the COMEX (Commodity Exchange) market will be delivered in February. added $17.10 or 0.84% to $2,057.60/ounce.
A weaker dollar increases the attractiveness of gold. This makes gold contracts cheaper for holders of other currencies. As for the fall in US government bond yields It will help reduce the opportunity cost of holding gold. This is because gold is an asset that has no return in the form of interest.
In addition, gold prices are supported by expectations of an interest rate cut by the Federal Reserve (Fed) next year.
CME Group’s FedWatch Tool indicates that investors expect the Fed to start cutting interest rates at its March 2024 meeting. And the Fed will cut interest rates 6 times in 2024, cutting interest rates by 0.25% each time, for a total of 1.50%, more than the Fed has signaled to cut interest rates 3 times, by 0.25% each time, for a total of 0.75%.
Investors will be keeping an eye on the Personal Consumption Expenditures (PCE) price index due to be released on Friday. The PCE index is the Fed’s preferred measure of inflation. Because it can detect changes in consumer behavior and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).
Analysts expect that the Headline PCE index, which includes food and energy categories, rose 2.8% year-on-year in November from 3.0% in October.
When compared monthly, it is expected that the general PCE index will not change in November. or increased by 0.0% from the level of 0.0% as well in October.
As for the Core PCE Index (Core PCE), which does not include food and energy categories. It is expected to increase 3.4% in November year-on-year from 3.5% in October.
On a monthly basis, it is expected that the core PCE index increased 0.2% in November after also increasing 0.2% in October.
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