Investors on a gold buying spree on Black Friday

2023-11-27
Summary:

Gold surpassed $2000 again on Monday, fueled by a weakened dollar and bets that the Fed won't raise rates further this month.

Gold rose on Monday above a key $2000 level. Bullion breached crossed the mark last Friday for the second time this month due to a weak dollar on bets that the Fed is done with rate hikes.

Traders widely expect the Fed to leave rates unchanged in December, while pricing in about a 64% chance of a cut as early as May, according to CME's FedWatch Tool.


Pimco warned that “the inflation problem is far from being solved” earlier this month. JPMorgan Chase echoed that caution, saying people were over-reacting to short-term numbers.


But the Fed showed little interests in rate cuts anytime soon as inflation remains well above their goal, according to its latest meeting minutes.


Black Friday e-commerce spending popped 7.5% from a year earlier, reaching a record $9.8 billion in the US, according to an Adobe Analytics report. That might disappoint investors who hope for a sharp downturn in price growth.


silver jumped 2.7% to a 12-week high in the previous session. The white metal has significantly underperformed gold year-to-end and historically the former breaks out after a major rally in the latter.

XAUUSD

Gold retreated after hitting a fresh yearly high around $2018. It has more room for upside as long as it holds above the key psychological support.


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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