Gold prices saw a notable rise of nearly 1% after declining in the previous week. This increase was driven by a slowdown in the US dollar’s upward momentum, which had been on a strong trajectory in recent weeks.
At the same time, investors focused on upcoming statements from US Federal Reserve officials, seeking clues about the future direction of interest rates amid ongoing economic uncertainties.
Spot gold prices rose by 1.2% to reach $2,593 per ounce, while US gold futures climbed 1% to settle at $2,597 per ounce.
This recovery followed a six-day losing streak that significantly impacted gold’s performance, with its value dropping around 6% since the US elections on November 5. According to a report by UBS analysts, these losses mark the worst post-election week since 1980, when Ronald Reagan assumed the US presidency.
Meanwhile, the dollar stabilized after a 1.6% gain last week. A weaker dollar typically supports gold by making it more attractive to investors holding other currencies.
This week, global markets are anticipating significant remarks from Federal Reserve officials. These come amidst the release of strong US economic data and inflation reports, which play a critical role in ongoing discussions about the pace and timing of potential interest rate cuts.
Expectations for a December rate cut were dampened last week, especially after recent data revealed better-than-expected US retail sales performance, reflecting the strength of the US economy. This strength adds further challenges for the Federal Reserve in shaping its upcoming monetary policies.
