Gold benefits from weaker dollar geopolitical worries
Metal rises, but remains on track for a weekly decline as markets await US data for insight into the Fed’s monetary policy direction
29 November 2024 - 07:25
byDaksh Grover
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.
Bengaluru — Gold prices rose on Friday, helped by a slight dip in the dollar and growing geopolitical tension, but remained on track for a weekly decline as markets awaited key US data for further insights into the Federal Reserve’s monetary policy direction.
Spot gold rose 0.7% to $2,660.03/oz by 2.36am GMT. However, bullion was down 2% so far this week. US gold futures gained 0.8% to $2,659.70.
The dollar index eased 0.2, boosting gold’s appeal for holders of other currencies.
The escalating geopolitical tension was making investors flock to gold in the hope of capitalising on the potential price increases, said Brian Lan, MD at Singapore-based dealer GoldSilver Central, adding, “The slight weakening of the dollar has helped gold prices to gain.”
The Israeli military said its air force struck a facility used by Hezbollah to store mid-range rockets in southern Lebanon on Thursday amid mutual ceasefire breach accusations.
Additionally, Russia on Thursday unleashed its second big attack on Ukraine’s energy infrastructure this month, triggering deep power cuts across the country.
Bullion is traditionally seen as a safe investment during economic and geopolitical uncertainties, such as conventional or trade wars.
Gold prices could test or dip below the key $2,600 level, with the metal likely to remain in a consolidation phase through December, Lan added.
Markets are pricing in a 66.5% chance of a 25 basis point (bp) rate cut by the Federal Reserve in December, per the CME Fedwatch tool, potentially marking 2024’s third cut.
Major US data releases next week, including job openings, the ADP employment report and the employment report, are expected to offer cues about the Fed’s rate cut outlook.
Spot silver added 1.1% to $30.58/oz, platinum gained 0.9% to $939.75 and palladium advanced 0.9% to $984.25. All three metals were set for weekly declines.
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 benefits from weaker dollar geopolitical worries
Metal rises, but remains on track for a weekly decline as markets await US data for insight into the Fed’s monetary policy direction
Bengaluru — Gold prices rose on Friday, helped by a slight dip in the dollar and growing geopolitical tension, but remained on track for a weekly decline as markets awaited key US data for further insights into the Federal Reserve’s monetary policy direction.
Spot gold rose 0.7% to $2,660.03/oz by 2.36am GMT. However, bullion was down 2% so far this week. US gold futures gained 0.8% to $2,659.70.
The dollar index eased 0.2, boosting gold’s appeal for holders of other currencies.
The escalating geopolitical tension was making investors flock to gold in the hope of capitalising on the potential price increases, said Brian Lan, MD at Singapore-based dealer GoldSilver Central, adding, “The slight weakening of the dollar has helped gold prices to gain.”
The Israeli military said its air force struck a facility used by Hezbollah to store mid-range rockets in southern Lebanon on Thursday amid mutual ceasefire breach accusations.
Additionally, Russia on Thursday unleashed its second big attack on Ukraine’s energy infrastructure this month, triggering deep power cuts across the country.
Bullion is traditionally seen as a safe investment during economic and geopolitical uncertainties, such as conventional or trade wars.
Gold prices could test or dip below the key $2,600 level, with the metal likely to remain in a consolidation phase through December, Lan added.
Markets are pricing in a 66.5% chance of a 25 basis point (bp) rate cut by the Federal Reserve in December, per the CME Fedwatch tool, potentially marking 2024’s third cut.
Major US data releases next week, including job openings, the ADP employment report and the employment report, are expected to offer cues about the Fed’s rate cut outlook.
Spot silver added 1.1% to $30.58/oz, platinum gained 0.9% to $939.75 and palladium advanced 0.9% to $984.25. All three metals were set for weekly declines.
Reuters
Oil mixed as Israel and Hezbollah accuse each other of breaking ceasefire
MARKET WRAP: Rand firms in thin trading session
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.