Gold Keeps Climbing – Here’s the Low‑down
In Friday’s market shuffle, the precious metal kept on its uptick, hovering around $1,990 an ounce – a modest 0.06% jump for the day. The rally is riding on a few head‑lining factors that are turning the tide in gold’s favor.
What’s Fueling the Gold Surge?
- Treasury Yields Take a Dip – US 10‑year notes are now at 4.44%, and the market is buzzing that the Fed might stop tightening.
- Dollar’s Sideways Stroll – The U.S. Dollar Index (DXY) stays around 104.40, giving gold a comfortable runway.
- Jobless Claims Shuffle for the Lower – Initial weekly claims hit 231,000, and continuing claims spiked to 1.865 M.
- Industrial Production Slips – October saw a 0.6% drop versus a modest 0.1% rise in September.
Geopolitical Wedgies Also Flop In
Even as Biden and Xi signed a “military reset” pact, the whole US‑China dance still keeps pop‑ups of uncertainty that can nudge gold higher, especially in the short and medium run.
Heat‑Mapping the Next Moves
On the horizon: building permits and housing starts data that are expected to fall slightly. While that creates a trading window, folks are advised to heed spikes in economic surprises.
Index of Expectations
- CPI & PPI for October are cooler than feared, supporting a view that the Fed’s tightening cycle has wound down.
- Bond yields are hugging their lowest since late September, signaling a potential rate cut in mid‑2024.
Warning Signals on the Horizon
History laughs at predators that chase a boom then bulldoze into a recession. If market sentiment turns gloomy over the Fed’s future moves, gold might keep on tick‑tack‑in the next few weeks, especially if the DXY cracks below 103.40 – a chance, but not a certainty. 2024’s inflation data will decide whether the economy’s downturn keeps pushing the Fed to shift policies.
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