- Write by:
-
Thursday, December 28, 2023 - 22:41:36
-
89 Visit
-
Print
Mining News Pro - Gold headed for its first annual gain in three years as investors doubled down on bets that the Federal Reserve will start to unwind its restrictive monetary policy stance in 2024.
Bullion fluctuated on the final trading day of 2023, putting it on track to end the year about 13% higher.
The precious metal typically has an inverted relationship with interest rates — the lower rates fall, the higher gold climbs. This year’s price movement has mostly been dictated by changing views on the Fed’s next steps on interest rates.
There has been growing expectation since October that the Fed will pivot to monetary easing in 2024 as inflation eases and the US labor market cools. Concerns around recession risks also boost the case to own debt, with traders betting global central bankers may have to aggressively cut rates to bolster growth. Such views have seen bullion gain nearly 13% since Oct. 6 amid declines in Treasury yields and the dollar, which is on pace for its worst year since 2020.
Gold surged to a record high in early December as traders bet the US central bank will start cutting rates at a sharper pace next year, only to quickly give up those gains when those positions were seen as overdone. It surged above $2,000 again in mid-December after Fed officials in their last meeting of the year gave the clearest signal yet that an aggressive rate hike campaign is over.
One important force behind gold’s strength has been central banks’ record buying of the haven asset. Such ferocious purchases help bullion trade at a significant premium to real Treasury yield — one of its biggest drivers — on a historical basis.
Gold has also been underpinned factors including geopolitical uncertainty, with 41% of the world’s population due to go to the polls in 2024.
Gold was little changed $2,064.79 an ounce as of 11:46 a.m. in New York.
Short Link:
https://www.miningnews.ir/En/News/627803
Copper futures in New York rallied to a record high after a short squeeze that’s prompted a scramble to divert metal in ...
China’s CMOC Group Ltd. is being accused by a top US official of using “predatory” tactics to depress prices of a key ...
A Native American group said on Tuesday it will take its fight against Rio Tinto’s proposed Arizona copper mine to the ...
South African diversified miner Sibanye Stillwater is discussing with lenders to temporarily lift limits on borrowings, ...
Japan’s top steelmaker, Nippon Steel, is sticking to its plan to close a deal by year-end to buy US Steel, which it ...
Africa-focused Montage Gold announced Thursday it has received a ministerial order granting all environmental approvals ...
Newmont Corp. has no plans to expedite a decision on its $2.5 billion Yanacocha Sulfides project, dashing the Peruvian ...
Copper briefly traded through $10,000 a ton as investors raised bets on Federal Reserve rate cuts, and Goldman Sachs ...
China’s central bank added 60,000 troy ounces of gold to its reserves in April, official data showed on Tuesday, ...
No comments have been posted yet ...