PT Solid Gold Berjangka | Gold Holds Steady as Activity Muted, Headed for Best Year in Three

01:31 28 December in Commodity, Gold, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | Thank you for providing the information on the current gold market situation. Based on the details you provided, here are some key points:

  1. Gold Prices Stability: Gold prices are currently stable, with spot gold trading flat at $2,067.14 per ounce. The market is experiencing muted trading activity in the last week of the year.
  2. Yearly Performance: Despite the muted trading, gold is poised to end the year with a notable gain of over 10%, making it the best-performing year for gold since 2020.
  3. Expectations of Federal Reserve Rate Cut: The main driver behind the positive performance of gold is the expectation that the Federal Reserve will cut interest rates in the first quarter of 2024. This anticipation is reinforced by last week’s U.S. inflation data, which has increased market expectations for a rate cut in March.
  4. U.S. Gold Futures: U.S. gold futures have risen by 0.5% to $2,079.20 per ounce, indicating some upward momentum in the market.
  5. Market Analyst’s Perspective: According to Jigar Trivedi, a senior analyst at Reliance Securities, gold is currently supported by expectations of a U.S. interest rate cut in the coming year. However, trading volumes are thin, and Trivedi expects spot gold to remain in a range of $2050 to $2070 on Wednesday and Thursday.
  6. Impact of Lower Interest Rates: The expectation of lower interest rates is cited as a key factor supporting gold prices. Lower rates reduce the opportunity cost of holding non-yielding assets like gold.
  7. Dollar Index and Gold Attractiveness: The dollar index is hovering near a 5-month low, and its performance for the year is expected to be the worst since 2020. A weaker dollar generally makes gold more attractive for investors holding other currencies.

It’s important to note that the information provided reflects the current state of the gold market and is subject to change based on various economic and geopolitical factors. Traders and investors should stay informed about relevant developments that may impact gold prices.