PT Rifan Financindo Berjangka – Gold Prices Surpass $2,700 As Fed’s Waller Turns Dovish
Gold prices surged above the $2,700 mark on Thursday as the greenback pared some of its earlier gains. Data from the United States (US) revealed that the economy remains solid following the release of consumer spending and jobs data. US bond yields fell as traders expect further easing by the Federal Reserve (Fed). At the time of writing, XAU/USD was trading at $2,715, up 0.72%.
Bullion extended its gains as market participants prepared for the inauguration of US President-elect Donald Trump. The US Census Bureau revealed that Retail Sales missed estimates in December. However, November’s data was revised up, indicating consumer strength.
Other data showed that the number of Americans filing for unemployment insurance jumped for the first time since December 7, 2024, weighing on the greenback.
The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, fell 0.14%, dropping below the 109.00 mark.
Fed Governor Christopher Waller delivered a dovish statement, stating that the US central bank could lower borrowing costs faster and faster if the desinflation process develops.
The US economic docket will remain light for the rest of the day and traders will be looking to housing data, particularly Building Permits and Housing Starts.
Source: FXStreet
Gold Climbs to Over One-Month High on Weaker Yields After US Data
Gold prices rose to a more-than-one-month high on Thursday after the latest U.S. economic data pressured the Treasury yields further, following a soft core inflation reading this week that increased bets for a more dovish Federal Reserve policy.
Spot gold gained 0.8% to $2,716.91 per ounce as of 01:40 p.m. ET (1840 GMT), hitting its highest since Dec. 12. Prices hit an all-time high of $2,790.15 on Oct. 31, 2024.
U.S. gold futures settled 1.2% higher at $2,750.90.
Initial claims for state unemployment benefits rose to a seasonally adjusted 217,000 for the week ended Jan. 11, the Labor Department said on Thursday. A Reuters poll had forecast 210,000 claims.
“The initial jobless claims were more than expected, so that signals some weakening in the labour market,” said Alex Ebkarian, chief operating officer at Allegiance Gold.
“We also saw the U.S. Treasury yields dropping, so we’re seeing the attractiveness of gold re-invigorating.”
The benchmark 10-year Treasury yields trimmed gains and were trading at an over one-week low after retail sales, jobless claims and import prices data.
Gold prices extended gains on Wednesday after data showed core U.S. inflation increased 0.2% in December after rising 0.3% for four straight months, also giving hopes for easing monetary policy.
Markets now expect the Fed to deliver 37 basis points (bps) worth of rate cuts by year-end, compared with about 31 bps before the inflation data.
“Gold should find itself in a supportive environment, so long as market participants can hold on to expectations for Fed rate cuts in 2025,” said Exinity Group chief market analyst Han Tan.
Elsewhere, Israel airstrikes killed at least 77 people in Gaza, hours after a ceasefire deal was announced to bring an end to 15 months of war.
Gold is seen as a hedge against inflation and geopolitical uncertainty, but higher interest rates tarnish non-yielding bullion’s allure.
Spot silver rose 0.5% to $30.80 per ounce and platinum added 0.4% to $934.20, while palladium fell 2.1% to $940.60. PT Rifan Financindo Berjangka.
Source : Reuters