On Comex, Nymex’s metals division, the metal scheduled for delivery in December closed up 0.30%, at US$1,993.5 per troy ounce
Nov 2, 2023 3:11 pm – Updated 7 minutes ago
Gold bars (Photo: PIxabay)
Gold closed higher today, but still remained below US$2,000, which according to CMC Markets has consolidated itself as a psychological barrier that resists being broken, and that gold will need a new catalyst for the commodity to drive prices above this brand. Today, however, the precious metal maintained gains while long Treasury yields fell and the dollar weakened against rivals.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in December closed up 0.30%, at US$1,993.5 per troy ounce.
According to Oanda analyst Edward Moya, the scenario at the moment is not very favorable for gold as a security asset. He considers that the Federal Reserve’s (Fed) monetary policy decision yesterday seems to indicate an end to the rise in interest rates in the USA, and that the market tends to react with an improvement in risk sentiment. “Investors will not rush into gold if Wall Street is confident that the Fed’s next move will be a rate cut in the middle of next year,” he says.
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This, in itself, causes fewer investors to look for safe assets, and with Treasury bond yields still above the level of recent months, Treasuries could consolidate themselves as more attractive safe assets than the precious metal .
With a possible improvement in risk appetite in the face of a cooling of tensions in the Middle East, which has shown signs of evolving into a regional conflict, Moya assesses that gold will struggle to surpass the price of US$2,000, agreeing with the view of the CMC that for this to happen, a new driver needs to influence the global market.
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