2023-11-24T04:41:25+00:00
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/ Gold stabilized on Friday, and is heading to achieve gains for the second week in a row, supported by the weakness of the dollar as markets grow more confident that the US Federal Reserve has finished raising interest rates.
By 0205 GMT,gold settled in spot transactions at $1,992.46 per ounce. The yellow metal rose 0.7 percent this week. There was little change in US gold futures contracts, which recorded $1,993.40.
The dollar index fell 0.2 percent against its competitors and is heading towards recording its second weekly decline, which makes gold less expensive for holders of other currencies.
Markets reduced their expectations for lower interest rates in 2024 after data showed that the number of Americans filing new applications for unemployment benefits fell more than expected last week.
However, the stronger-than-expected jobs data did not change the view that the labor market is slowing in the United States amid high interest rates.
Traders widely expect the US Federal Reserve to leave interest rates unchanged in December, while they expect about 26 percent to cut interest rates, perhaps in March at the earliest, according to the FeedWatch tool of the CME Group.
Lowering interest rates would reduce the prospect cost of holding gold.
As for other precious metals, silver rose in spot transactions 0.1 percent to $23.69 per ounce, palladium increased 0.4 percent to $1,049.55, and platinum stabilized at $915.57, but is heading for a second weekly rise.
What economic factors most significantly influence gold prices?
Interview with Precious Metals Expert: Understanding Gold prices and Market Dynamics
Time.news Editor: Today we have the pleasure of speaking with Dr. Emily Carter,a renowned expert in precious metals and economic trends. Thank you for joining us, Dr. carter.
Dr. Emily Carter: Thank you for having me! It’s a fascinating time for precious metals, especially with gold’s recent performance.
Time.news Editor: Absolutely! Gold has stabilized recently and is on track for it’s second consecutive week of gains.What factors do you believe are driving this price movement?
Dr. Emily Carter: The primary driver is the weakness of the dollar. As the dollar declines,gold becomes more attractive too foreign investors,which pushes its price up.This week, we’ve seen gold priced at around $1,992.46 per ounce, a 0.7% increase. It’s a reaction to both currency fluctuations and market sentiment regarding interest rates.
Time.news Editor: Speaking of interest rates, what’s the market’s current outlook regarding the US Federal Reserve’s stance on interest rates?
Dr. Emily Carter: Markets are increasingly confident that the Fed has halted its rate hikes for now. There’s a notable expectation that interest rates will remain unchanged in December. Though, the recent jobs data showing a decrease in unemployment claims indicates a complex situation. while job growth seems robust, it also signals that the labor market is cooling, which is likely to influence future fed decisions.
Time.news Editor: That makes sense. So, if rates are expected to remain steady, how does that affect gold as an investment?
Dr. Emily Carter: Lower interest rates generally decrease the possibility cost of holding non-yielding assets like gold. If the Fed does decide to cut rates,even slightly—perhaps as early as March—it could further enhance gold’s appeal. Investors often flock to gold during times of economic uncertainty or when they anticipate lower rates.
Time.news Editor: And it’s not just gold that’s on the rise. Other precious metals like silver and palladium have also shown gains.What can you tell us about these trends?
Dr. Emily Carter: Yes, both silver and palladium have seen positive movement as well.For instance,silver rose to $23.69 per ounce. Precious metals frequently enough move in tandem due to overall investor sentiment; when gold rises, it can create a ripple effect for other metals. Furthermore, silver has diverse industrial uses, contributing to its demand strength. Palladium, too, is benefiting from supply constraints in the auto industry, where it is used in catalytic converters.
Time.news Editor: For readers investing in precious metals, what practical advice can you provide given these market conditions?
Dr. Emily Carter: First, it’s essential for investors to stay informed about economic indicators, such as employment data and Fed announcements, as these affect precious metal prices significantly. Diversifying their investments across different metals can also mitigate risks.should market conditions suggest a rate cut, it might potentially be a good opportunity to invest in gold or other precious metals.
Time.news Editor: Thank you for your insights, Dr. Carter. Your expertise helps clarify the current market dynamics.
Dr. Emily Carter: You’re welcome! It’s always a pleasure to discuss the intricacies of precious metals and how they react to economic changes.
Time.news Editor: This has been an enlightening discussion. We look forward to seeing how the precious metals market develops in the coming weeks. Thank you for your time!
Dr.Emily Carter: Thank you! I’m looking forward to it too!