Gold surged to a record, then fell hard. What happened?
Spot gold rose 0.7% to $4,141.09 as traders weighed another Federal Reserve rate hike and a weaker dollar, according to CME FedWatch.
- On Thursday, gold prices climbed 0.7% to $4,141.09 per ounce as the US dollar eased from an 18-month peak, helping bullion recover from a two-month low.
- The precious metal soared to a record of nearly $5,600 before tumbling to roughly $4,000, and has since clawed back to about $4,200, leaving investors questioning if gold's gains can extend.
- Interest rates, inflation, and dollar strength drive gold's volatility this year, with Treasury yields at 20-year highs; Daniel Eye, senior portfolio manager at Focus Partners Wealth, said Federal Reserve policy remains the primary swing factor.
- Traders see an 80 per cent likelihood of a Federal Reserve rate increase in December according to CME's FedWatch tool, while higher rates diminish the appeal of non-yielding gold.
- Eye suggests a small 2% to 5% allocation as a hedge, noting that large government deficits and central bank diversification remain long-term drivers supporting gold despite near-term rate pressures.
31 Articles
31 Articles
The prices of future gold contracts closed high, with the highest demand for assets considered safe in the face of the new tensions in the Middle East, despite the more favourable stance to the monetary tightening of the Federal Reserve (Fed) and the high inflationary risks. In Comex, metal division of the New York Mercantile Exchange (Nymex), the gold with delivery planned for October closed high of 0.44%, to US$ 4,131.8 per ounce-troy. The pre…
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D24&w=64&q=75){kind=small}
Gold Holds Near $4,117 as Investors Reassess Federal Reserve Rate Outlook
Gold steadied Thursday after dropping to a two-month low, with rising U.S. Treasury yields and a stronger dollar weighing on the precious metal. Investors are ... The post Gold Holds Near $4,117 as Investors Reassess Federal Reserve Rate Outlook first appeared on [your]NEWS.
The price of gold rose slightly today - Thursday - after touching its lowest level in two months during the previous session, while markets are waiting for more clarity on the path that the Federal Reserve Council will take.
Business Recorder
The Hindu Business LineGold prices recover from two-month low as dollar rally stalls
Gold prices edged higher on Thursday as the dollar eased from an 18-month peak, helping bullion recover from a two-month low, while traders weighed the prospect of another US Federal Reserve rate hike this year. Spot gold was up 0.5% at $4,132.66 per ounce by 0140 GMT. On Wednesday, bullion prices touched their lowest level since August 5 as a firmer dollar and higher US Treasury yields weighed on the market. US gold futures for December del…
Coverage Details
Bias Distribution
- 50% of the sources lean Right
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D60&w=128&q=75)
Factuality
To view factuality data please Upgrade to Premium
