2023-11-28 17:19:07
Gold futures prices continue to rise. It most recently surpassed the $2,040 level today. The positive factor was the weakening of the dollar. and the prediction that The Federal Reserve (Fed) has ended the cycle of raising interest rates.
At 11:57 p.m. Thai time, gold contracts on the COMEX (Commodity Exchange) market will be delivered in December. added $28.10, or 1.40%, to $2,040.50/ounce.
The Dollar Index measures the dollar’s movement against six major basket currencies. Dropped to the lowest level in 3 months today. and is likely to fall by more than 3% this month, which will be the biggest decline in 1 year.
A weaker dollar increases the attractiveness of gold. This makes gold contracts cheaper for holders of other currencies.
Investors speculate that the Fed has ended its cycle of raising interest rates. After raising interest rates 11 times since the start of the interest rate hike cycle in March 2022, As a result, the Fed raised interest rates by 5.25%.
The latest CME Group’s FedWatch Tool indicates that investors expect the Fed to maintain interest rates at 5.25-5.50% at its meetings in December 2023, January 2024, March 2024 and May. 2024 before reducing the interest rate by 0.25% to the level of 5.00-5.25% at the June 2024 meeting.
Investors will also be keeping an eye on the Personal Consumption Expenditures (PCE) price index due to be released on Thursday. 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 predict that the PCE index will slow down in October. This will be a supporting factor for the Fed to stop raising interest rates.
The general PCE index, which includes food and energy categories, is expected to increase 3.1% in October year-on-year from 3.4% in September.
On a monthly basis, it is expected that the general PCE index increased 0.1% in October from 0.4% in September.
As for the basic PCE index, which does not include food and energy categories. It is expected to increase 3.5% in October year-on-year from 3.7% in September.
On a monthly basis, it is expected that the core PCE index increased 0.2% in October from 0.3% in September.
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