GOLD Will gold retreat after the news on Friday today?
According to the U.S. Department of Labor, the CPI rose 0.4% in September, exceeding the 0.3% rise in August. However, the annual CPI has declined compared to the peak of 9.1% recorded in June 2022.
Traders now believe there is a 38% chance the U.S. Federal Reserve will raise interest rates in December, up from 28% before the inflation report was released, according to CME's FedWatch tool.
The 10-year US Treasury yield and USD index also rose on the above data.
The main factor supporting gold prices during trading is investor caution due to the escalating conflict between Israel and Hamas. Gold is considered a safe investment during times of political and financial instability, but as interest rates rise, the opportunity cost of holding unprofitable gold increases.
"There are still some signs of a slowdown in the U.S. economy, which should be positive for gold," said Edward Moya, senior market analyst at OANDA. We expect gold prices could range from $1,860 to $1,920 per ounce in the near term. ”
Among other metals, spot silver fell 1.2% to $21.79 an ounce, platinum fell 2.2% to $865.87 an ounce, and palladium fell 2.9% to close at $1,132.75 an ounce.
Traders now believe there is a 38% chance the U.S. Federal Reserve will raise interest rates in December, up from 28% before the inflation report was released, according to CME's FedWatch tool.
The 10-year US Treasury yield and USD index also rose on the above data.
The main factor supporting gold prices during trading is investor caution due to the escalating conflict between Israel and Hamas. Gold is considered a safe investment during times of political and financial instability, but as interest rates rise, the opportunity cost of holding unprofitable gold increases.
"There are still some signs of a slowdown in the U.S. economy, which should be positive for gold," said Edward Moya, senior market analyst at OANDA. We expect gold prices could range from $1,860 to $1,920 per ounce in the near term. ”
Among other metals, spot silver fell 1.2% to $21.79 an ounce, platinum fell 2.2% to $865.87 an ounce, and palladium fell 2.9% to close at $1,132.75 an ounce.
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