PT Solid Gold Berjangka | Gold Steadies as Traders Seek Clues on Fed’s Interest-Rate Path

01:26 10 January in Commodity, Gold, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | The provided information outlines the current status of gold prices and factors influencing them, as reported by Bloomberg. Here’s a summary:

  1. Market Reaction to Federal Reserve Comments: Gold prices are stable as traders analyze recent comments from Federal Reserve officials to gauge the potential trajectory of interest rates. Fed Governor Michelle Bowman suggested that keeping interest rates at current levels could help bring inflation towards the Fed’s 2% target. Atlanta Fed President Raphael Bostic noted that inflation has come down more than expected but cautioned against premature declarations of victory.
  2. Chinese Buying Impact: There is speculation that part of the strength in gold prices amid higher bond yields is attributed to Chinese buying. TD Securities commodity strategists, led by Bart Melek, suggest that Chinese import license banks might have received import quotas ahead of the Lunar New Year, starting on Feb. 10. This could lead to Chinese banks selling Shanghai gold and buying London or Comex gold to secure the spread, potentially supporting gold prices.
  3. Market Expectations and Fund Activity: Bullion prices have shown resilience in the face of higher bond yields, partly due to expectations that the Federal Reserve may not raise interest rates further. The strategists anticipate increased buying activity in bullion from commodity trading advisors as funds re-leverage, boosting investment demand.
  4. Gold Price Movement and Inflation Data: Gold has been trading above $2,000 an ounce since December 13, signaling a belief among investors that the Fed’s rate hike campaign is over. Traders are looking to Thursday’s U.S. inflation data for insights into when the first rate cut might occur.
  5. Current Gold Price: As of the provided information, gold is trading at $2,026.61 per ounce in New York, experiencing a slight decline of 0.07%.

In summary, gold prices are influenced by Federal Reserve comments, Chinese buying speculation, and market expectations regarding interest rates. Traders are closely monitoring inflation data for potential clues about future monetary policy decisions.