Domestic gold price
Domestic gold price fluctuations
World gold price developments
World gold prices increased in the context of the falling USD. Recorded at 6:20 p.m. on December 1, the US Dollar Index, which measures the greenback's fluctuations against six major currencies, was at 103.325 points (down 0.11%).
Gold prices turned to increase in the context of oil prices - a commodity closely related to precious metals - recovering after a sharp decline in the early session on December 1. Brent crude oil price for February 2024 delivery increased 0.1% to 80.92 USD/barrel (recorded at 15:20). US light sweet crude oil price (WTI) also increased 0.2% to 76.13 USD/barrel.
OPEC+, a group of producers that accounts for 40% of the world’s oil output, is focusing on reducing output as prices have fallen from around $98 a barrel in late September. Saudi Arabia, Russia and other OPEC members have agreed to voluntarily cut oil production by nearly 2 million barrels a day in the first quarter of 2024.
Gold was also supported as key Asian stock markets mostly fell on the afternoon of December 1.
World gold prices are headed for a third consecutive week of gains after data showing easing inflation reinforced bets that the US Federal Reserve (FED) will cut interest rates.
Matt Simpson, senior analyst at City Index, said that while traders had previously expected the Fed to cut rates in 2024, they are now even more confident in that expectation after the US personal consumption expenditure (PCE) index rose slightly. That development is clearly beneficial for gold.
Data released on November 30 showed that US consumer spending increased moderately in October, while recording the lowest annual inflation increase in more than 2 1/2 years.
Traders have increased bets on the Fed starting to cut interest rates, from an 80% chance in May 2024 to a 50% chance in March.
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