•The market awaits comments from Federal Reserve officials
Gold prices fell in the European market on Friday, giving up the highest level in a week, due to the activity of correction operations and profit-taking, and under pressure from the rise in the US dollar levels in the foreign exchange market.
The US currency buying activity is the best investment available in the markets, amid the Federal Reserve’s hawkish trends regarding the path of monetary policy in 2025.
Price overview • Today’s gold
prices: Gold prices fell by about 0.35% to ($2,625.18), from the opening level of trading at ($2,633.57), and recorded the highest level at ($2,638.36).
•At the settlement of prices on Thursday, gold prices achieved a rise of 0.65%, the second daily gain in a row, and recorded the highest level in a week at $ 2,639.19 per ounce, due to the activity of buying the metal as a haven.
The US dollarthe
index rose more than 0.1% on Friday, resuming gains that were temporarily halted yesterday. It is on its way to touching its highest level in two years, reflecting the strength of the US currency’s performance against a basket of major and minor currencies.
U.S. unemployment claims fell to their lowest level last week, data showed on Thursday, pointing to a strong labor market and potential pressure on the Federal Reserve to keep interest rates steady for as long as possible into 2025.
US interest rate
: According to the CME Group’s FedWatch tool: The pricing of the probability of a 25 basis point cut in US interest rates at the next January meeting is currently stable at 10%, and the pricing of the probability of keeping interest rates unchanged is 90%.
• To re-price these possibilities, investors will be awaiting, over the coming period, comments from some Federal Reserve officials on the development of the inflation battle in the United States and the future of interest rates.
•San Francisco Federal Reserve President Mary Daly and two other Fed policymakers recently said they feel the central bank is likely to resume interest rate cuts next year but will take its time because the “recalibration phase” is over.
Gold Performance Outlook
: “We are in a holiday lull, so price action is a bit muted, with exaggerated moves perhaps due to thin liquidity,” said Kyle Rodda, a financial markets analyst at Capital.com.
“The decision (to cut interest rates) shook the markets’ confidence in the number of cuts that are likely to come next year and that was a headwind for gold,” Rodda added.
