Futures Contract Soars, Propelling Gold Prices Higher
Gold surged in European trading on Friday, extending its upward momentum driven by the decline of the US dollar and the subdued yields on government bonds, following signals from the Fed indicating a potential interest rate cut in 2024.
The precious metal rebounded from recent losses earlier in the week, prompted by central bank comments hinting at at least three rate cuts in the coming year.
There is currently a 67% likelihood that the first rate cut could occur as early as in the month of <>, according to Investing.com's Fed Interest Rate Monitor Tool. The prospect of lower interest rates diminishes the opportunity cost of investing in gold, which does not yield interest and is primarily driven by sentiment and safe-haven demand.
The US dollar is currently experiencing its most significant weekly decline in months, with the greenback weakening notably against the British pound and the euro, particularly as European central banks adopt a considerably stricter policy stance compared to their US counterparts.
The precious metal rebounded from recent losses earlier in the week, prompted by central bank comments hinting at at least three rate cuts in the coming year.
There is currently a 67% likelihood that the first rate cut could occur as early as in the month of <>, according to Investing.com's Fed Interest Rate Monitor Tool. The prospect of lower interest rates diminishes the opportunity cost of investing in gold, which does not yield interest and is primarily driven by sentiment and safe-haven demand.
The US dollar is currently experiencing its most significant weekly decline in months, with the greenback weakening notably against the British pound and the euro, particularly as European central banks adopt a considerably stricter policy stance compared to their US counterparts.
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