Gold prices edged higher on Wednesday, rising above the $1,675 per ounce level. If gold prices decline, support may be found near $1,614 per ounce and further down at the 2020 low near $1,441 per ounce. Resistance may be around 1,735 per ounce and higher at $1,765 per ounce.
Gold prices remained steady on Wednesday, gaining a little strength, despite a rising dollar and US yields. The dollar remained strong on Wednesday, exhibiting low volatility even after the release of the US PPI data and the dollar index remained above 113 throughout the day. Increased price pressures on Wednesday supported the dollar, as rising inflation in the US increases the odds of another steep Fed rate hike. US Treasury yields also remained strong, with the US 10-year bond yielding above 3.9%.
US Monthly PPI and Core PPI data for September released on Wednesday showed that price pressures continue to increase, putting extra strain on the Federal Reserve to continue with its policy of monetary tightening. Thursday’s CPI data will complete the picture of US monthly inflation and are anxiously awaited by traders as they are likely to influence the severity of the Fed’s next rate hikes.
Global recession concerns are causing high market volatility ahead of the US inflation data later in the week. Sharp rate hikes and continuous fiscal tightening run the risk of tipping some of the world’s leading economies into recession. World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned earlier this week of a growing risk of global recession while stressing the need to bring inflation under control.
Continued hawkish Fed rhetoric has rekindled expectations of sharp rate hikes, boosting dollar prices at the expense of competing assets, such as gold. Gold prices are under pressure by the shift of most major Central Banks towards a tighter monetary policy to combat rising inflation rates. Assets yielding interest become a more appealing investment compared to gold as interest rates rise. In its latest monetary policy meeting, the US Fed raised its interest rate by 75 basis points. Rampant US inflation has raised expectations for another steep rate hike at the Fed’s next policy meeting in November, putting pressure on gold prices.
The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.
Written by:
Myrsini Giannouli
presença na indústria como Provedor de Liquidez
e execução confiável
fundos de clientes
suporte ao cliente
Preencha o formulário de registro
e clique em
'Criar conta'.
Depois de estar na segurança de sua área de cliente, prossiga em fazer o upload de sua prova de identidade e prova de residência.
Quando sua conta real é aprovada, você pode depositar fundos e começar a negociar em sua plataforma escolhida!
O site que está agora a visualizar é operado pela TopFX Global Ltd, uma entidade regulada pela Financial Services Authority (FSA) das Seicheles com uma Licença de Negociante de Títulos N.º SD037 que não está estabelecida na União Europeia ou regulada por uma Autoridade Nacional Competente da UE.
Se desejar prosseguir, queira confirmar que a sua decisão será por sua iniciativa exclusiva e que nenhuma solicitação foi feita pela TopFX ou por qualquer outra entidade dentro do Grupo.
Não mostrar esta mensagem novamente
O site TopFX usa cookies para otimizar a experiência do usuário.
Esses cookies se enquadram nas seguintes categorias: cookies essenciais, funcionais e de marketing. Os cookies de marketing também podem incluir cookies de terceiros.
Você pode personalizar sua seleção de quais cookies deseja aceitar.
Esses cookies são necessários para que o site funcione corretamente e não pode ser desligado.
Os cookies funcionais permitem que o site se lembre das preferências dos usuários e as opções que você faz no site, como nome de usuário, região e idioma.
Esses cookies são usados para rastrear visitantes em nossos sites e mostrar anúncios mais relevantes. Os cookies de marketing também incluem cookies de terceiros da Partners. Para obter mais informações relacionadas à proteção e coleta de dados, consulte nossa Política de Privacidade e Divulgação de Cookies.