Fed Chairman Powell reiterated the Fed’s desire to tighten policy further if necessary and markets were confident that the cycle of rate hikes was over. Powell stated that it is clear that US monetary policy was slowing the economy as expected, with the benchmark overnight interest rate reaching restrictive territory. Anticipating the end of the narrowing cycle may benefit the yellow metal. However, gold tends to rise as interest rates fall, while higher interest rates put pressure on the yellow metal.
In terms of data, the US Census Bureau revealed on Monday that US factory orders fell 3.6% month-on-month in October from a 2.3% rise in the previous reading. Elsewhere, an attack on a US warship and merchant ships in the Red Sea on Sunday stoked fears of escalating conflicts. This, in turn, may promote safe-haven flow and benefit the yellow metal.
Looking ahead, the Chinese Caixin Manufacturing PMI for November will be released and is expected to improve from 49.5 to 49.8. The pessimistic Chinese data could put some pressure on the price of gold as China is the world’s largest producer and consumer of gold. In addition, the US ISM Manufacturing PMI for November and the speech of Fed Chairman Jerome Powell will be widely watched.
The unemployment rate is expected to remain stable in November at 3.9%. Analysts also said the prospect of a US interest rate cut is a factor supporting gold prices to continue rising.
Looking ahead to the coming year, risks include geopolitics, elections in leading countries and the possibility of major economies falling into recession. These risks fuel the desire to invest.
Gold prices rise on the back of the international market and important discoveries in Muddy Creek
The yellow metal reached Rs 64.200 per 10g on the Multi-Commodity Exchange ( MCX) in early morning trading today, weighed down by the international market. Silver, dubbed the poor man’s gold, also rose to a new high of 78.331 rupees per kilogram. At around 4 p.m., gold trading was slightly lower by about 63,850..
The ASX index reached gold anomalies by more than 1.5 km with up to 127 g/t of gold in Muddy Creek, where 18 rock samples were rated with more than 10 g/ton of gold, and more than 80% of soil samples returned with more than 1 g. / Gold.
To summarize the recent gold chain, several multi-gram gold rock samples were also found in the nearby Discovery area, adding another 800 meters of strike to the anomaly identified at Muddy Creek.
“The train area continues to shine, this time in Muddy Creek and Discovery, which are east of Train and Trumpet and north of Shoeshine andShadow skylines
“Taken together, these possibilities represent an anomaly about 4.5 kilometres long and 2.5 kilometres wide, and the possibility of continuity between them certainly exists in what appears to be another related massive interventionist gold system. .
“In addition to the high-quality gold, which we encountered again at Muddy Creek, there is also extensive multi-element potential with anomalous antimony, copper and silver throughout .
“These results also confirm the train area, and the potential of Muddy Creek in particular, as one of our highest-rated drilling targets for creating a third resource warehouse as we continue to develop the Estelle project on our way to production.”
Gold and Bitcoin prices rise as interest rate hikes expected to be delayed
Gold futures rose above $2,100 an ounce, while Bitcoin surpassed $40,000 on Monday morning in response to growing expectations that the Fed
Gold contracts on the Comex market, due for delivery in February next year, rose 6.70 or 0.80% on Monday morning to $2,106.40 an ounce. According to local gold trader Hua Seng Heng, gold prices rose sharply on Friday and rose around $70 last week after Federal Reserve Chairman Jerome Powell suggested that the US central bank may have stopped raising interest rates. The statement caused the dollar to depreciate and US bond yields to fall, which supported gold prices.
Factors to keep an eye on this week are US employment figures, including nationwide private sector employment in November and nonfarm payrolls in the same month.
Gold prices are expected to remain on an upward trend after breaking the key resistance level at $2,050 on November 3. The next resistance is at 2,100, the highest level ever.
Speculation about the Fed’s interest rate policy has driven not only gold prices, but also the price of Bitcoin, which rose strongly on Monday morning. Investors will keep an eye on the US nonfarm payrolls figures due on Friday to find a clear direction regarding the Fed’s interest rate policy.
Analysts polled by the Wall Street Journal noted that nonfarm employment in the United States was expected to reach 190,000 jobs last month, higher than the 150,000 jobs on record.
Gold prices exceed $ 2100 and set records
Gold prices hit a new record high at the start of the week, with spot prices reaching $2,100 per ounce as global demand for bullion continues to rise. In New York on Sunday evening, spot gold temporarily exceeded $2,100 an ounce, hitting a historic peak, before falling almost 2% on Monday to around $2,028 an ounce. Meanwhile, gold futures hit an intraday record high of $2,152.30, but eventually settled down 2.27% at $2,042 per ounce.
Analysts expect gold prices to reach new highs next year and could consistently remain above the $2,000 level. These expectations are attributed to geopolitical uncertainty, expectations of a weaker US dollar, and potential interest rate cuts. The conflict between Israel and Hamas and expectations of low interest rates have contributed to the rise in gold prices for two consecutive months, as the metal is sought as a safe-haven asset during periods of economic and geopolitical instability.
The expected decline in the US dollar and interest rates are important positive factors for gold, estimating that its price could reach 2200 US dollars per ounce by 2020. End of 2024. Analysts share a similar bullish stance on the future of gold, noting that the current leverage in gold is lower compared to 2011, which could push prices to as low as $2,100 and around $2,200 per ounce.
