Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says


Gold Rises to $2,342.33 Amid Weaker U.S. Dollar

Gold Rises to $2,342.33 Amid Weaker U.S. Dollar

Quick Look:

Gold prices rose by 0.2% to $2,342.33/oz as the U.S. dollar weakened;
Recent 2.2% drop in prices reversed amid renewed rate cut expectations;
Key events: Federal Reserve meeting and U.S. non-farm payroll data.

On Monday, gold prices saw a modest uplift, registering a 0.2% increase to $2,342.33 per ounce, as the U.S. dollar weakened, providing a supportive backdrop for the precious metal. This gain is particularly notable as it maintains the metal’s position above its 21-day moving average of $2,336. The financial markets now stand on the brink, keenly awaiting the outcomes of the Federal Reserve policy meeting and the crucial U.S. non-farm payroll data due later this week. These events are critical as they may offer fresh clues on the future direction of U.S. monetary policy, which has a significant bearing on commodity prices, including gold.

Gold’s Recent 2.2% Drop Reverses Amid Rate Cut Hopes

The context of Monday’s price rise is shaped by recent volatility in the gold market. Last week, gold prices took a sharp 2.2% dive amid de-escalating Middle East tensions and diminishing expectations for early U.S. interest rate cuts within the year. Market sentiment has now stabilized, with investors tentatively pricing in a potential rate cut, likely in November, as per insights from the CME’s FedWatch tool. Ole Hansen, head of commodity strategy at Saxo Bank, noted that the “gold bulls bought into last week’s weakness,” a strategic move to protect long positions established at lower levels. Despite short-term fluctuations, this strategy highlights the underlying confidence in gold’s long-term value.

Before this dip, gold had enjoyed five consecutive weeks of gains, reaching an all-time peak of $2,431.29 on April 12. This surge was driven by robust buying from central banks and increased demand from Chinese retail investors responding to a weakening yuan. Despite a forecasted seasonal decline in Chinese regional demand into mid-2024, analysts at Citi remain optimistic. They predict a structurally stronger consumption trend that could support a higher baseline price for gold. This could potentially lead to prices reaching $3,000 over the next 12-15 months.

Fed Decision & Payroll Data: Crucial for Gold’s Next Move

The Federal Reserve has scheduled its policy meeting from April 30 to May 1. Expectations suggest that the Fed will maintain the benchmark interest rate at a steady 5.25% to 5.5%. Moreover, the forthcoming release of U.S. non-farm payroll data on Friday will provide further insights. These insights will delve into the health of the American labour market, a crucial indicator of overall economic stability.

Meanwhile, the precious metals sector also noted an uptick in silver prices, which increased by 0.9% to $27.40 per ounce. This recovery in silver prices followed a significant 5.2% fall last week, indicating resilience among investors who are finding value at lower price points.

The gold market continues to be shaped by a complex interplay of macroeconomic indicators, geopolitical tensions, and market sentiment. As investors and analysts alike focus on the upcoming Federal Reserve meeting and key economic data, the movements in gold prices this week will likely provide valuable insights into the broader economic outlook and the strategic positioning of global financial markets.

The post Gold Rises to $2,342.33 Amid Weaker U.S. Dollar appeared first on FinanceBrokerage.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...


    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024