EconomyGold heads for best month in more than two...

Gold heads for best month in more than two years as focus is on Powell’s speech

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Gold rose on Wednesday as the dollar eased and headed for its biggest monthly gain in more than two years, as investors braced for a speech by US Federal Reserve Chairman Jerome Powell looking for clues on future interest rate hikes.

Spot gold was up 0.6% at $1,760.56 an ounce at 0921 GMT. US gold futures were up 0.6% at $1,759.40.

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Gold is heading for a 7.8% monthly rise, which would be the best since July 2020, and follows a seven-month losing streak.

“In general, the scenario is improving for both gold and silver. Gold is in a consolidation phase after recent gains and markets are in standby mode, awaiting more clarity from the Fed.”said Carlo Alberto De Casa, an external analyst at Kinesis Money.

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The US dollar index was down 0.4%, making bullion less expensive for other currency holders.

Market participants are eyeing Powell’s upcoming speech at a Brookings Institution event at 1830 GMT for any indication on the central bank’s policy strategy ahead of its December meeting.

The Fed is expected to raise interest rates by 50 basis points, after four consecutive 75 basis point hikes, to control inflation. A smaller increase could boost gold.

“If Powell takes a hawkish stance, the dollar will strengthen and gold will go lower, probably as low as the $1,745 level. But if he is more dovish, gold could go as high as the $1,780 level,” said Edward Meir, an analyst at ED&F Man Capital Markets.

Investors will also be closely watching ADP’s national employment report at 1315 GMT.

Spot silver rose 0.9% to $21.47 an ounce, on track for its best monthly gain since December 2020.

Platinum rose 1.4% to $1,016.00, on track for its biggest monthly gain since February 2021. Palladium rose 2.7% to $1,882.63 and gained 2.5% year-to-date.

Source: Elcomercio

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John
John
I am John Casanova. I am an author at 24 news recorder and mostly cover economy news. I have a great interest in the stock market and have been writing about it for many years. I am also interested in real estate and have written several articles on the subject. I am a very experienced investor and have a lot of knowledge to share with others.

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