GOLD easing pressure from the USD

16 พ.ย. 2023

Despite a slight decrease, experts still predict the future of gold prices optimistically.

World gold price stood at 1,958 USD/ounce, down slightly by 5 USD/ounce compared to the same hour yesterday morning.

This morning, the US Dollar Index increased 0.4% and the 10-year US Treasury bond yield recovered, putting downward pressure on gold prices. However, precious metal prices still remain at their highest level within the past week.

Gold is anchored at a high price because countries are still promoting gold imports and increasing their reserves of this precious metal. China currently holds at least 33,000 tons of gold, many times the figure of 2,215 tons given by the World Gold Council and double the US level of 16,500 tons.

CPI data from the US was lower than forecast, supporting gold prices. Expectations that in the fourth quarter, inflation will cool down even more. This will weaken the USD and push up gold prices. In the next 6 months, we forecast prices towards 2,100 USD/ounce.

With yields rising again, gold will fall after the initial rally. The outlook will remain positive for the asset (gold) but more caution is needed. However, this upside could be limited as concerns about an escalation of the war in Gaza have faded that had fueled a rise in safe-haven appeal over the past month.