Gold loses footing at $2000 level
2023-11-22
Summary:
Gold dipped below $2000 on Wednesday as the dollar strengthened. Despite warnings from Fed officials, it had crossed that mark in the previous session.
Gold ease from the key $2000 hurdle on Wednesday as the dollar firmed. Bullion marched past that level in the previous session though several Fed officials had warned about investor overconfidence.
The central bank agreed at their last meeting, its minutes showed, that interest rates would only need to move higher if incoming information showed insufficient progress in lowering inflation.
Markets expect the Fed to leave rates unchanged in December and currently pricing in a nearly 60% chance of a rate cut of at least 25bps by May, according to CME's FedWatch Tool.
Iran, which has expressed unambivalent support for Hamas, is preparing to provide Russia with advanced short-range ballistic missiles for the war against Ukraine, according to US officials.
Swiss gold exports in October rose to their highest level since May as demand surged 60% in India during the country's festive season, customs data showed on Tuesday.
The global silver market faces a third consecutive year of supply deficit in 2023, the Silver Institute said last week. Gold/silver ratio remains above 80, suggesting the white metal to outperform going forward.
A double-top pattern signals that trend has been changed to downwards. Gold could fall further as light data calendar and the Thanksgiving holiday will unlikely provide more catalysts this week.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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