Daily digest market movers: Gold price reverses Wednesday’s losses... dari ia7145

19 Apr 2024, 15:51 · Views 124

Gold price recovers majority of Wednesday’s losses and rises higher to $2,380 as investors remain worried about geopolitical tensions. Traders continue to gung-ho for Gold amid fears that Israel could retaliate to Iran’s attack on their territory in which the Iranian military launched hundreds of drones and missiles.
A correction in the US Dollar also supports the precious metal. Five-day winning streak in the US Dollar has been halted as traders expect that other central banks from developed nations will also delay their rate cut plans due to persistent price pressures. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, falls sharply to 105.75. Generally, the appeal of dollar-denominated Gold improves amid soft US Dollar.
The near-term demand for the US Dollar remains firm as Federal Reserve (Fed) policymakers see interest rates remaining higher for a longer period until they get convincing data that inflation will return sustainably to the desired rate of 2%.
On Tuesday, Fed Chair Jerome Powell said recent data has clearly not given policymakers confidence that they should start considering rate cuts. Instead, interest rates need to remain higher for longer than expected to gain that confidence.
On Wednesday, Cleveland Fed Bank President Loretta Mester also argued for keeping the monetary policy framework restrictive. Mester remained optimistic that the Fed will eventually gain the confidence to lower interest rates and start normalising policy again, but that shouldn’t be done quickly.

Penafian: Pandangan yang dinyatakan adalah semata-mata dari pengarang dan tidak mewakili kedudukan rasmi Followme. Followme tidak bertanggungjawab ke atas ketepatan, kesempurnaan, atau kebolehpercayaan maklumat yang diberikan dan tidak bertanggungjawab untuk sebarang tindakan yang diambil berdasarkan kandungan, melainkan dinyatakan secara bertulis secara jelas.

Suka artikel ini? Tunjukkan penghargaan anda dengan menghantar tip kepada pengarang.