Gold Price For Today; 18 July 2023: Gold prices edged up on Tuesday on a dollar that was close to hitting its lowest in over a year, while traders waited for retailsales data from the United States to gauge any impact on the U.S. Federal Reserve’s monetary tighteningpath.
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Spot gold (XAU/USD) rose 0.3% to $1,959.54 per ounce by 0359 GMT. U.S. gold futures (XAU/USD) gained 0.4% to $1,963.70.
The dollar DXY wobbled near an over oneyear low. A weaker dollar makes goldcheaper for holders of other currencies.
While the upcoming Fed meeting might temporarily dim the appeal of gold, “the Fed is closer to end of tightening cycle,”.
“It should not take long to see real yields ease lower at some stage.”
- Interest rate futures showed markets were pricing in another 25 basis points rate hike at the Fed’s July 25-26 meeting.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
“We also favour long gold as a risk-off hedge (safe haven proxy) against slowing global growth or any risk-off market event,” Wong added.
Speaking to Bloomberg TV on Monday, Treasury Secretary Janet Yellen said she did not expect the U.S. economy to enter a recession.
Investors expect the European Central Bank and the Bank of England to go further with their rate-hike cycle as they try to bring down inflation down to 2% that was at 5.5% in June and 8.7% in May respectively.
Minutes of the Reserve Bank of Australia’s July policy meeting earlier today showed a restrictive stance, choosing to keep interest rates steady this month.
Investors will also watch for U.S. retail sales data for June later in the day while weak Chinese economic data released the previous day continued to weigh on sentiment.
FAQs:
Interest rate futures showed markets were pricing in another 25 basis points rate hike at the Fed’s July 25-26 meeting.
Most officials estimate the federal funds rate will top out at a range of 5.63-5.87% in 2023, suggesting there might be as many as two more quarter-point hikes this year.
September 19-20* Oct/Nov 31-1. December 12-13* January 30-31, 2024 March 19-20, 2024.
Fannie Mae, the Mortgage Bankers Association and National Association of Realtors predict that mortgage rates will fall. Fannie Mae, Mortgage Bankers Association and National Association of Realtors predict that the 30-year fixed-rate mortgage will decline at least half a percentage point through the middle of 2024.
Sources: Reuters
