Gold prices rise over 1 percent on Thursday, recovering from 1-month low
Date
12/19/2024 2:15:39 AM
(MENAFN) Gold prices surged by over 1 percent on Thursday, rebounding from a one-month low reached earlier in the trading session. The recovery was driven by short-covering buying as investors sought opportunities following the earlier decline. Market participants are now focusing on key U.S. economic data for signals regarding the Federal Reserve's potential policy direction in the coming months.
As of 0251 GMT, spot gold prices were up 0.8 percent, trading at USD2,607.88 per ounce. However, U.S. gold futures showed a contrasting movement, dropping by 1.2 percent to USD2,620.60 per ounce. This divergence highlights the mixed sentiment in the gold market as traders assess short-term price movements alongside broader economic indicators.
Kelvin Wong, a senior market analyst for Asia-Pacific at OANDA, noted that the recent uptick in gold prices was largely due to short-covering activity by speculators. "Very short-term speculators are looking for opportunities to buy on the dip, and gold’s gains are due to short-covering after the metal touched the psychological USD2,600 level yesterday," he explained. His analysis suggests that speculative behavior played a significant role in gold’s recovery.
Traders are now closely watching the release of several critical U.S. economic reports later on Thursday, including GDP growth figures, initial jobless claims, and core personal consumption expenditure data. Wong pointed out that while personal consumption data meeting expectations may not affect gold significantly, an increase to 3 percent or higher could put renewed pressure on prices. These upcoming data points are expected to provide clarity on the Federal Reserve's stance on interest rate cuts over the next year, further influencing gold market trends.
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