The gold quotations continue to rise, which have reached new maximums of all time, also breaking through the threshold of $ 3,700 the ounce, in the wake of the progressive weakening of the green ticket and in view of the FOMC meeting, which with an absolute certainty will announce a cut of the interest rates of 25 basis tomorrow evening.
The gold above 3,700 dollars
The gold spot price today exchanges around $ 3,692 the ounce (+0.35%), touched a historic maximum of $ 3,698 in the morning. The future on the Gold for Delivery December, on the other hand, went well over 3,700 dollars, reaching $ 3,725.70 (+0.2%), compared to a maximum intraday of 3,737.42 USD, which corresponds to the highest level of all time.
The performer scored by gold this year is to say the least impressive, since the precious has gained 41% since the beginning of the year and only in the last month has risen by more than 10%. A symmetrical performance to that of the dollar, which continues to depic on the currency markets.
The role of the dollar and the Fed
The increase in gold quotations is to speculate to the trend of the dollar, which continues to depic on the currency market, in response to the expectations of a cut of the US interest rates, ventilated by the president of the Federal Reserve Jerome Powell since Jackson Hole’s symposium at the end of August. Expectations that have gradually strengthened with the exit of bad economic data on the US labor market.
The Dollar Index, an indicator that expresses the strength of the dollars, resurks to a basketball of the main world currencies, exchanges at 97.05 (-0.25%).
The mini dollar pushed the euro to break through the $ 1.18 threshold, with a peak touched today at 1.1822 USD, on the eve of the announcement of the FOMC decisions, whose meeting starts today. A cut is almost certain now, with the future Fedwatch listed at the CME which give a cut of 25 points a 96%probability.
Commerzbank has raised the forecasts on the gold
In light of gold performance, Commerzbank analysts have raised the growth predictions of the precious metal, citing the forecasts of future cuts in the interest rates of the Federal Reserve “slightly greater” than what is currently discounted by the markets by indicating a prices of $ 3,600 on this year and 3,800 dollars by the end of 2026. previous.
Commerzbank believes that the Fed will carry out rates of 75 points base points (BPS) in the rest of the year and an additional 125 points in 2026, slightly above the level indicated by the Fed Funds Futures.
