Gold was slightly higher on Tuesday as the US dollar eased
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Gold was slightly higher on Tuesday as the US dollar eased. US Treasury yields retreated as well, lowering the opportunity cost of holding non-yielding bullion. European yields declined, adding some support. Oil prices slipped, helping mitigate near-term inflationary pressures and ease monetary policy tightening forecasts.
Expectations of an October Fed rate hike remained subdued ahead of US economic data this week, but markets are still pricing in a strong chance of a hike in December. This could keep gold at risk, in particular as Fed officials reaffirmed the need for a restrictive stance to control inflation.
At the same time, central bank diversification could continue to underpin the gold market. However, mixed ETF flows during the last few weeks provide limited support.
Looking ahead, traders are focused on Wednes’ay’s CPI report and Thu’sday’s PPI data ahead of ’ctober’s meeting. Softer numbers could keep yields muted and help ’ith gold’s rebound. Stronger-than-expected prints may lift the dollar and yields, pushing the yellow metal lower. Attention also remains on Chair ’evin Warsh’s speech on Friday. Crude and Middle East developments remain near-term risks.
Appreciate your cooperation in publishing the analysis.
For any inquiry or more information please do not hesitate to contact us.
Regards
Hello MENA FN
Greetings, trust this email finds you well.
Kindly find " Today's markets analysis on behalf of Tony Sage, CEO of Critical Metals '
Gold was slightly higher on Tuesday as the US dollar eased. US Treasury yields retreated as well, lowering the opportunity cost of holding non-yielding bullion. European yields declined, adding some support. Oil prices slipped, helping mitigate near-term inflationary pressures and ease monetary policy tightening forecasts.
Expectations of an October Fed rate hike remained subdued ahead of US economic data this week, but markets are still pricing in a strong chance of a hike in December. This could keep gold at risk, in particular as Fed officials reaffirmed the need for a restrictive stance to control inflation.
At the same time, central bank diversification could continue to underpin the gold market. However, mixed ETF flows during the last few weeks provide limited support.
Looking ahead, traders are focused on Wednes’ay’s CPI report and Thu’sday’s PPI data ahead of ’ctober’s meeting. Softer numbers could keep yields muted and help ’ith gold’s rebound. Stronger-than-expected prints may lift the dollar and yields, pushing the yellow metal lower. Attention also remains on Chair ’evin Warsh’s speech on Friday. Crude and Middle East developments remain near-term risks.
Appreciate your cooperation in publishing the analysis.
For any inquiry or more information please do not hesitate to contact us.
Regards
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