Investor focus remains on Federal Reserve policy cues
29 November 2022 - 07:37
byAshitha Shivaprasad
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Bengaluru — Gold prices ticked up on Tuesday, helped by a softer dollar, while market participants awaited more clarity on the US Federal Reserve’s rate hike stance.
Spot gold was up 0.3% to $1,745.22 per ounce at 2.51am GMT. US gold futures rose 0.3% to $1,745.40.
Bullion prices fell about 1% in the previous session after hawkish comments from US Federal Reserve officials. Fed presidents James Bullard and John Williams said there was a long way to go to fight inflation.
“Gold is seeing a corrective rise after the preceding session. Also, the dollar is slightly lower,” DailyFX currency strategist Ilya Spivak said.
The dollar index inched 0.2% lower. A weaker greenback makes gold cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding the nonyielding asset.
Investors’ focus will now squarely be on Fed chair Jerome Powell, who is due to speak at a Brookings Institution event on Wednesday.
“If Powell’s speech strikes a tone that the market reads as not pushing the hawkish ball forward, then gold will have a bounce,” Spivak said.
The ADP National Employment report and the US labour department’s nonfarm payroll data is also due this week. The data could provide some further clues on the Fed’s policy plan.
“Investors will now turn attention to US economic data this week for any signs the Fed may ease its aggressive rate hikes,” ANZ said in a note.
Spot silver gained 0.9% to $21.10, platinum rose 0.9% to $997.25 and palladium was up 0.7% to $1,857.00.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold moves up as dollar dips
Investor focus remains on Federal Reserve policy cues
Bengaluru — Gold prices ticked up on Tuesday, helped by a softer dollar, while market participants awaited more clarity on the US Federal Reserve’s rate hike stance.
Spot gold was up 0.3% to $1,745.22 per ounce at 2.51am GMT. US gold futures rose 0.3% to $1,745.40.
Bullion prices fell about 1% in the previous session after hawkish comments from US Federal Reserve officials. Fed presidents James Bullard and John Williams said there was a long way to go to fight inflation.
“Gold is seeing a corrective rise after the preceding session. Also, the dollar is slightly lower,” DailyFX currency strategist Ilya Spivak said.
The dollar index inched 0.2% lower. A weaker greenback makes gold cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding the nonyielding asset.
Investors’ focus will now squarely be on Fed chair Jerome Powell, who is due to speak at a Brookings Institution event on Wednesday.
“If Powell’s speech strikes a tone that the market reads as not pushing the hawkish ball forward, then gold will have a bounce,” Spivak said.
The ADP National Employment report and the US labour department’s nonfarm payroll data is also due this week. The data could provide some further clues on the Fed’s policy plan.
“Investors will now turn attention to US economic data this week for any signs the Fed may ease its aggressive rate hikes,” ANZ said in a note.
Spot silver gained 0.9% to $21.10, platinum rose 0.9% to $997.25 and palladium was up 0.7% to $1,857.00.
Reuters
JSE faces higher Asian markets despite Covid concerns in China
Market data — November 28 2022
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