Solid Gold Berjangka | Gold Edges Up as Markets Focus on Likely Fed Path Beyond July

10:38 03 November in Market

Gold edged higher, buoyed by a slump in Treasury yields and a weaker dollar, while traders speculated over the Federal Reserve’s next interest rate move beyond July.

US policymakers are widely expected to raise interest rates by 25 basis points this week — a scenario that’s already been priced in for gold — though the greater focus will be on the Fed’s messaging on the trajectory after this month. Swaps traders slightly reduced wagers on another hike in September, but markets largely remain divided on the outlook. Higher rates are typically negative for bullion, which doesn’t yield any interest.

Meanwhile, yields on two-year US government notes declined around eight basis points Tuesday, offering further support to bullion. Bond markets were re-calibrating after an auction Monday drew the highest yield since 2007 following a rapid selloff in the contracts.

The precious metal has consolidated above $1,950 an ounce after surging earlier in the month, spurring money managers trading on the Comex to turn more bullish on gold. Still, the enthusiasm has yet to follow through to bullion-backed exchange-traded funds, with holdings at the lowest since April 2020.

Spot gold climbed 0.3% to $1,960.93 an ounce at 12:51 p.m. in Singapore, after falling 0.4% in the previous session. The Bloomberg Dollar Spot Index edged lower. Silver, platinum and palladium all rallied.

Source : Bloomberg

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