24K99 News On Wednesday (November 8), gold prices fell for the third consecutive trading day on Wednesday as investors looked for new clues about the Federal Reserve’s interest rate stance.
(Spot gold trend chart, source: FX168)
Spot gold closed down $18.91 per ounce, or 0.96%, to $1,950.16 per ounce.
COMEX December gold futures closed down $15.70 per ounce, or 0.80%, to $1,957.80 per ounce.
COMEX December silver futures closed up 0.62% at $22.728 per ounce.
[Market News Analysis]
The political risk premium accumulated on precious metals is beginning to fall back. This is because although the situation in the Middle East is unpredictable, wider conflicts have not occurred.
Another factor contributing to the weakness in precious metals is reduced demand for safe-haven positions. Recently, the US dollar has continued to rise. Therefore, the fear of missing out drives traders to turn their attention to the stock market rather than non-yielding assets.
Despite recent market dynamics, there are still reasons to be optimistic about precious metals. That said, one catalyst that could put upward pressure on its price is a pullback in interest rates. Last month, the 10-year U.S. Treasury bond yield exceeded 5.0%, but has since fallen back sharply. Today, the 10- and 30-year U.S. Treasury bond yields fell by at least 5 basis points. If this correction accelerates in the near term, the backdrop for gold and silver will become more constructive. But U.S. Treasury yields, which remain elevated, have fallen back to more than a decade highs, cutting off a major bullish channel for spot gold prices.
Gold prices are under selling pressure again today as hawkish comments from Federal Reserve policymakers have dominated recently, raising hopes that the Fed can achieve its goal of curbing inflation. Market participants had hoped for a different tone in Fed Chairman Powell’s speech at the Fed’s statistical meeting. However, the Fed chairman failed to touch on monetary policy, but he will continue to speak tomorrow, when it may still be possible. However, gold prices may struggle to recover as investors become cautious ahead of Fed Powell’s speech.
Daniel Ghali, commodities strategist at TD Securities, said: “Traders will start looking at economic data and potential actions by the U.S. central bank. Gold will react based on what the data shows.”
Rich Checkan, president and chief operating officer of Asset Strategies International, said, “If state agencies directly intervene in the conflict, I would see gold prices rising significantly.” “We may see $2,200 per ounce. But I don’t think prices will rise significantly.” “
Investors need to be aware of the weekly jobless claims report due out this Thursday. The next major report in the US will be the Consumer Price Index on November 14th.
[Focus on financial data and events in the next trading day (Beijing time)]
① 07:50 Japan’s September trade account
② 07:50 The Bank of Japan releases a summary of the review committee’s opinions
③ 09:30 China’s October CPI annual rate
④ 16:35 Bank of Japan Governor Kazuo Ueda was interviewed
⑤ 21:30 Number of initial jobless claims in the United States for the week ending November 4
⑥ 22:30 Fed Bostic and Barkin delivered speeches
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⑦ Barkin of the Federal Reserve gave a speech at 00:00 the next day
⑧ At 01:30 the next day, European Central Bank President Lagarde delivered a speech
⑨ At 03:00 the next day, Fed Chairman Powell delivered a speech