Gold price on COMEX plus $16.3 due to dollar weakness. Markets expect the Fed to stop raising interest rates. After inflation rose less than investors expected
News reports from abroad revealed that yesterday (November 14, 2023) the COMEX (commodity exchange) gold contract will be delivered in December. It rose $16.30, or 0.84%, to close at $1,966.50 per ounce. According to the dollar index, which is an index that measures the movement of the dollar against six major currencies in the currency basket. Weakened last night which is a factor supporting the market.
The gold contract also received positive factors after the US Department of Labor revealed that the Consumer Price Index (CPI), which measures inflation from consumer spending, rose 3.2% in October on an annual basis. Lower than analysts’ expectations of 3.3% from 3.7% in September.
The core CPI, which does not include food and energy, rose 4.0% in October year-over-year. Lower than analysts’ expectations of 4.1% from 4.1% in September.
This was after the US released its Consumer Price Index for October. Investors are 100% optimistic that the Fed will maintain interest rates at 5.25-5.50% at its December meeting. 2023 and January 2024
In addition, investors are 65% likely that the Fed will cut interest rates by 0.25% to 5.00-5.25% at its May meeting. 2024, up from 34% in Monday’s poll. Faster than before, the Fed was expected to cut interest rates in June. 2567
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