Gold prices decline under pressure from the recovery in US revenues, and the recovery in US revenues puts negative pressure on gold bullion. Gold prices fell in the European market on Friday, continuing their losses for the third day in a row, moving away from their highest levels ever. This decline is due to the acceleration of the correction and profit-taking processes, in addition to the pressure of the recovery of the yield on US 10-year Treasury bonds.
Despite the decline, gold is a candidate for weekly gains. Despite this decline, the precious metal “gold” is still a candidate for its fourth consecutive weekly gain. This comes in light of the high pricing in the possibility of the Federal Reserve cutting interest rates next September and November. Investors may expect this trend to continue if support from global economic conditions and monetary policies continues to affect the dollar and US revenues, which enhances the attractiveness of gold as a safe haven.
Gold prices today: Gold metal prices decreased by 1.0% to ($2,420.61), from the opening level of trading at ($2,445.18), and recorded the highest level at ($2,445.54). When prices were settled on Thursday, gold prices lost A rate of 0.4%, the second daily loss in a row, with continued corrections and profit-taking from the highest level ever at $2,483.76 per ounce.
US bond yields: The yield on ten-year US Treasury bonds rose on Friday by about 0.5 percentage points, continuing its gains for the second session in a row, with continued recovery from the lowest level in four months at 4.144%. As we know, the recovery of US yields It leads to a rise in the opportunity cost of holding non-yielding gold bullion
Weekly transactions and US interest rates
Daly added during the Federal Reserve Bank event in Dallas: We do not have stability in prices at the present time. Weekly trading: Throughout this week’s trading, which officially ends when prices are settled today, gold prices are high so far by about 0.5%, in the process of achieving Fourth weekly gain in a row
Jerome Powell: Federal Reserve Chairman Jerome Powell said on Monday: The three consumer price readings issued during the second quarter of this year “reinforce confidence somewhat” that inflation is returning to its 2% target in a sustainable way. Powell explained We got three readings that were better than expected, and if you average them out the result is a very good place.
Powell added: The Federal Reserve will not wait for inflation to reach the medium-term target of 2% before it begins to ease monetary policy and lower interest rates.
US interest rates: Following these comments, and according to the CME Group’s “Fed Watch” tool: futures pricing for the probability of a reduction in US interest rates rose by about 25 basis points in September from 94% to 98%, and the probability The reduction in November from 98% to 100%. Traders are closely following, at successive times today, the comments of some Federal Reserve officials about the development of the inflation battle in the United States and the future of interest rates.
Expectations about gold performance: Kelvin Wong, chief market analyst at OANDA, said: Gold is currently witnessing some profit-taking, but things look positive in the medium term amid a state of political uncertainty and with interest rate cuts approaching. Executive Director of the European brokerage company Mind Money, Julia Khandushko: It is expected that the official announcement of easing monetary policy by the Federal Reserve will boost gold prices.
US gold futures fell
SPDR Fund Gold holdings at the SPDR Gold Trust Fund, the largest supported global index fund, decreased by about 2.01 metric tons, bringing the total to 840.01 metric tons, abandoning the total of 842.02 metric tons, which is the highest level since last February 8. It decreased Spot gold rose 0.8% to $2,424.34 an ounce, and rose 0.7% so far this week and hit an all-time high of $2,483.60 on Wednesday.
Treasury Bonds: US gold futures fell 1.2% to $2,426.10, and pressure on gold increased with the dollar rising 0.1% today, Friday, and standard US Treasury bond yields for 10 years also rose.
Markets are 98% likely to cut US interest rates next September, according to CME’s Fed Watch tool, and low interest rates increase the attractiveness of the yellow metal, which does not generate a return, according to Reuters.
Inflation: Earlier this week, US Federal Reserve Chairman Jerome Powell said that recent inflation readings somewhat increase confidence that the pace of price increases is returning to the central bank’s target in a sustainable way, indicating that lowering interest rates may not be far away. . Yesterday, Thursday, data showed that the number of Americans who filed new applications for unemployment benefits rose more than expected last week, but this did not indicate a fundamental shift in the labor market amid the temporary closure of auto factories and unrest due to Hurricane Beryl.
The local market was affected by the increase caused by fears of a decrease in interest rates and the rise in the global price of an ounce to $2,470. Munib added in a statement today that, so far, despite the rise in the price of a gram of 21 carat gold in the local market to 3,315 pounds
