Gold prices were stable in Tuesday-Wednesday morning trading, with bullion trading around US$4,135 per troy ounce. Market participants were weighing two key sentiments: hopes for a US interest rate cut and the possibility of a peace agreement in Ukraine. Delayed US economic data supported speculation that the Federal Reserve would cut interest rates at its next meeting, after retail sales rose only slightly in September and consumer confidence recorded its deepest decline since April.The prospect of a lower interest rate environment was also reinforced by reports that Kevin Hassett, Director...
The dollar index held below 100 on Wednesday, continuing its decline from the previous session. Pressure stemmed from weak US economic data, reinforcing market confidence that the Fed will cut interest rates at its December meeting. Data showed that US retail sales rose less than expected in September, while consumer confidence fell sharply in November. This indicates that consumer spending is beginning to slow after months of strong demand. Currently, market participants estimate an 84% chance of a 25 basis point Fed rate cut next month, up sharply from around 50% a week earlier. This...
The Japanese yen held its recent advance to around 156 per dollar on Wednesday, hovering at one-week highs and benefiting mainly from dollar weakness as traders ramped up bets on a US Federal Reserve rate cut in December. Those expectations grew after the latest US data pointed to softening consumer spending, while reports suggested that a dovish candidate is being considered for the next Fed chair. The yen also found support amid rising speculation that Japanese authorities could intervene in currency markets, with the US Thanksgiving holiday on Thursday creating a potential window for...
The Australian dollar strengthened to around US$0.65 on Wednesday, hitting a one-week high. This strengthening occurred after higher-than-expected inflation data came out, further convincing the market that the Reserve Bank of Australia (RBA) will remain hawkish and not ready to ease interest rates anytime soon. The first full monthly inflation data showed that price pressures remain high. Headline inflation rose to 3.8% in October, the fastest pace in seven months and above market expectations. More importantly, trimmed mean inflation—the RBA's favorite measure of underlying price...
Silver prices (XAG/USD) continued their three-day rally, approaching US$52.00 per troy ounce during Wednesday's Asian session. This strengthening occurred as US bond yields weakened, with the 10-year US Treasury yield holding around 4.00% after falling around 3.4% over the week. Lower yields make non-yielding assets like silver attractive again to investors. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 bps to a range of 3.50%-3.75% at its December meeting jumped to around 85.3%, from just 50.1% the previous week. These dovish expectations were...