Gold opened just above the $2,300 per ounce level and was trading in a range of $30 per ounce most of the time. In the absence of other important data, the rise in gold prices was due to an unexpected rise in weekly unemployment benefits data released on Thursday morning. Fed Chair Jerome Powell said that interest rate cuts will continue in 2024.
Gold prices clearly broke above $2,330 an ounce in early U.S. trading and climbed steadily on Thursday and throughout the overnight trading session, reaching a weekly high of $2,378.56 an ounce in early trading on Friday. During Friday's trading session, gold prices continued to hold most of their gains. As can be seen from this article, the price of gold is affected by market data and the Federal Reserve.
This drove the price of gold higher. Fed Chairman Jerome Powell's previous statement that interest rates will continue to be cut also supported by gold traders' views on the possibility of rate cuts. Gold acts as a safe-haven asset at a time of rising economic uncertainty and market risk sentiment.
This has led investors to worry about the economic outlook and thus choose gold as a safe asset. In addition, the Fed's monetary policy expectations are also an important factor affecting gold prices. Interest rate cuts increase inflation expectations, making physical assets such as gold more attractive. However, it is important to note that the rise in the price of gold does not imply:
It is believed that a rate cut could create inflationary pressures, which would weaken gold's appeal as a safe-haven asset. In addition, the gold market is also affected by other factors such as global geopolitical conflicts, economic data releases, gold mining and supply, etc. Overall, the main reason for the rise in gold prices this week was the unexpected rise in unemployment benefits data and Powell's comments on interest rate cuts.
"Hey" However, looking at Chu like this
Feng, Chu Yue was sour: "Chu."
Brother Feng, you haven't been able to take this year's inner door assessment
Participate? Haven't you reached it yet
Lingwu Triple?"
Chu Feng didn't answer, his face was still the same
With a smile on his face, no one knows what he is
What do you mean?