Gold futures prices remain above $2,000, the dollar is weakening, and bond yields are falling to support the market.
InfoQuest – Gold futures prices rose above $2,000 today. The positive factor was the weakness of the dollar. And lower US government bond yields.
At 7:09 PM Thailand time, gold contracts will be delivered on the COMEX (commodity exchange) market in February. It added 9.90, or 0.5%, to $2,003.60 per ounce.
A weak dollar increases the attractiveness of gold. This makes gold contracts cheaper for holders of other currencies. As for the decline in US government bond yields, it will help reduce the opportunity cost of owning gold. This is because gold is an asset that does not return in the form of interest.
The US Department of Labor will release the Consumer Price Index (CPI), which measures inflation in consumer spending. November period tonight
The results of the analyst survey expected that the headline consumer price index, which includes food and energy categories, rose 3.1% in November year-on-year from 3.2% in October.
When compared monthly, the overall CPI is expected to remain unchanged in November. Or rose 0.0% after also increasing 0.0% in October.
As for the core consumer price index (Core CPI), which does not include the food and energy categories. It is expected to rise by 4.0% in November year-over-year. After also rising by 4.0% in October.
On a monthly basis, the core CPI is expected to rise by 0.3% in November from 0.2% in October.
Investors place nearly 100% of their weight in expectations. The US Federal Reserve is set to keep interest rates steady at its meeting this week. It will cut interest rates as soon as possible at the May 2024 meeting.
CME Group’s latest FedWatch tool indicates that investors are giving 98.4% of their weight in predicting that the Fed will maintain interest rates at 5.25-5.50% at its December 12-13, 2023 meeting.
Additionally, investors expect the Fed to maintain interest rates at 5.25-5.50% at the January 2024 and March 2024 meetings before cutting rates by 0.25% to 5.00-5.25% at the May 2024 meetings.
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