PT Solid Gold Berjangka | Gold Declines as Traders Focus on Rates Outlook and Geopolitics
Solid Gold Berjangka | Gold declined after the precious metal briefly rallied above $2,000 an ounce on Friday following US data that pointed to a cooling labor market.
Nonfarm payrolls showed that hiring slowed more than anticipated in October, while the unemployment rate rose to the highest in almost two years. That suggested the central bank’s policies are bringing inflation under control and interest rates are nearing their peak.
Investors brought forward their forecasts for Federal Reserve rate cuts next year, and have now fully priced in a reduction by June, according to swaps pricing. Higher rates are generally negative for non-interest bearing bullion.
The precious metal is still up more than 8% in the wake of the Hamas attacks on Israel a month ago. US Secretary of State Antony Blinken made an unscheduled stop in Baghdad at the weekend, expanding American diplomacy in the Middle East with the goal of preventing a spread of the Israel-Hamas war.
“The geopolitical Middle Eastern war that propelled the rally in gold is becoming seemingly unconvincing to push rates any further,” said Priyanka Sachdeva, a senior analyst at Phillip Nova. “Unless gold marks two consecutive closes over $2,010 per ounce, doors to newer highs remain closed.”
Hedge funds have responded to the rising tensions by adding to their bullish bets in the Comex gold market, according to data from the Commodity Futures Trading Commission. Meanwhile exchange-traded funds have kept their holdings steady.
Spot gold was down 0.3% to $1,987.39 an ounce at 10:18 a.m. in London. The Bloomberg Dollar Spot Index fell 0.2%. Silver and platinum also edged lower, while palladium rose.
Source : Bloomberg,PT SGB, Solid Gold Berjangka, Solid Group