2023-12-02T04:52:48+00:00
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Gold prices jumped to thier highest levels ever,after statements by Federal Reserve Chairman Jerome Powell,which increased traders’ confidence that the US central bank has completed tightening its monetary policy and may reduce interest rates as of March.
Based on recent comments made by Jerome Powell, financial markets have increased expectations for the start of interest rate cuts in March 2024, and expectations indicate that interest rates may fall to less than 4 percent by the end of next year.
Low interest rates reduce the opportunity cost of holding gold, which offers no return. However, there are concerns that gold prices may have become overvalued, as the market has a history of taking monetary policy expectations into account prematurely.
Suki Cooper, an analyst at Standard Chartered Bank, warns that gold prices may have entered overbought territory and the market may be unjustifiably pricing in future interest rate cuts.
What enhanced the attractiveness of bullion was the decline in 10-year US Treasury bond yields to the lowest level in 12 weeks and the dollar index fell 0.3 percent.
Everett millman,chief market analyst at gainesville Queens,expects the current rise in gold prices to continue until the end of the year. It is believed that the possibility of gold testing its highest record levels again is possible.
Gold rose in instant transactions by 1.7 percent to $2,070.9 per ounce at the close of trading yesterday, Friday, after recording gains of about $54 in November, the second consecutive monthly increase. Last October,it recorded gains of about $135 per ounce.
US gold futures contracts were settled up 1.6 percent at a record level of $2,089.7, and their gains increased after settlement to $2,091.7 per ounce.
As for other precious metals, silver rose in spot transactions by 0.9 percent to the highest level in more than 6 months at $25.47 per ounce, achieving gains for the third week in a row. Platinum rose by 0.6 percent to $932.44 per ounce, while palladium lost 0.3 percent to 1004.9. Dollar per ounce.