Market Analysis

Gold prices touched a 3-month maximum

GOLD

Gold prices touched a 3-month maximum during early Tuesday trading. The price of bullion continues to rise, showing a clear correlation with the ongoing dollar weakness. The greenback has been under pressure since the release of US employment figures for the month of October earlier this month, which showed a slowdown in the creation of new jobs, with the downwards movement increasing after the publication of lower-than-expected inflation figures. Against this background, Federal Reserve officials continue to make mixed statements. While some hint at a slowdown in the pace of rate hiking, others suggest that the tightening cycle is far from over. Judging by the performance of the dollar so far this month, falling around 8% in relation to its peers, the market’s main takeaway from the latest events is that peak inflation is behind us and the Fed is indeed likely to slow the pace of hiking down. If confirmed, this is a scenario that, given the global economic and geopolitical uncertainty, is likely to deliver further gold price gains.

Ricardo Evangelista – Senior Analyst, ActivTrades     

 

Source: ActivTrader

 

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