Price increases are promoted by weakening the dollar with expectations to reduce US Federal Reserve (FED) interest rates (FED).
The price of gold updated the historical maximum and fixed above $ 3700 per ounce. This was confirmed by Comex exchange data on Tuesday, September 16th.
Thus, during December futures’ quotes trading on precious metal, they increased by 0.4% and reached $ 3735.5 per ounce. Since the beginning of the year, gold rose by 35%.
According to Western Media, rising gold prices contributed to the weakening of the US dollar to the expectations of the UNA from December last year to reduce Federal Reserve (FRS) interest rates (FRS) on September 17. The possibility that the rate will be reduced by 25 major points is estimated by the market by almost 96%, according to the CME Fedwatch. At the same time, analysts and participants see a small probability that the stakes will be reduced by 50 BP immediately
The DXY index, which is calculated by ICE, showing the dollar dynamics related to six currencies (Euro, Swiss Franc, Yen, Canadian dollars, Pound Sterling and the Swedish crown), lost almost 0.3%on Tuesday. Dolice weakening adds demand for gold from those who have other currencies.
Remember, on August 5, the cost of gold in the first time exceeds $ 3600 per ounce. Then weak data from the US manufacture market enhances the expectations of reducing Federal Reserve System’s interest rates, which supports the gold market.
It is also reported that gold became the second most popular owner in the international reserves of World Central Banks in 2024, which exceeded the Euro.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.