Gold prices have dropped slightly today, Wednesday, in the global markets. This decline in gold prices is primarily due to a slight increase in the Dollar Index.
According to Reuters, today the spot price of gold in the global market has fallen by 0.4% to $2,514 per ounce. Earlier, on August 20, the price of bullion gold had risen to $2,531 per ounce. At the same time, the price of US Gold Futures has decreased by 0.2% to $2,549 per ounce.
Today, the Dollar Index has increased by 0.1%, leading to a slight rise in the value of the dollar compared to gold among investors. The market is now looking ahead to the Federal Reserve's decision next month regarding interest rate cuts. If rates are cut, the dollar exchange rate may decrease, and it is anticipated that gold prices may rise again. Despite the slight drop in gold prices today, analysts believe there is a potential for short-term gold price increases. In the short term, gold prices could rise to $2,532 per ounce. In the long term, gold prices may stay between $2,585 and $2,595 per ounce.
Meanwhile, the US Personal Consumption Expenditures (PCE) index, which is a core measure of the Consumer Price Index, has been released. It shows that consumer confidence in the US has increased. However, there is some discomfort among people due to the rise in unemployment last month. In this context, the path for the Federal Reserve to reduce interest rates has become clearer.
Market analysts are now quite certain that interest rates will be lowered next month. A survey by CME FedWatch Tool shows that 67% of people believe the policy interest rate will be reduced by 25 basis points, while 33% believe it will be reduced by 50 basis points.
In July, China's gold imports increased by 17%, marking the first rise since March.
Gold is not only used for jewelry but is also an important investment medium. When bond interest rates decrease or stock indices fall, investors are attracted to gold. Conversely, when bank interest rates rise or the stock market is strong, gold's appeal to investors diminishes. In 2022 and 2023, investors invested in dollar-denominated bonds, which led to a drop in gold prices at that time.
Despite the slight drop in gold prices today, the value of this metal has risen significantly this year. From the beginning of the year, there have been rumors that the Federal Reserve will cut interest rates. If that happens, bond interest rates will also decrease, leading investors to invest in gold ahead of time. As a result, gold prices have increased this year.
.jpeg)
0 Comments