The sharp wave of climbing continued in the global gold price to record 6 consecutive weeks from the rise to a new historical level during this week, to record gold an increase since the beginning of the year by more than 43%.
Gold prices today
24 caliber records 5800 pounds
21 caliber records 5075 pounds
18 caliber records 4350 pounds
Gold pound 40600 pounds
During the past week, gold was affected by a number of changes, the most important of which was the statements of the members of the American Federal Bank, headed by the bank’s president, Jerome Powell, who stated that the central bank needs to continue balancing the competing risks to high inflation and weak labor market in the upcoming interest rate decisions.
Powell also pointed to the increasing state of uncertainty about the American economy, stating that there is no risk -free path to reduce interest rates while curbing inflation and maintaining job growth.
Powell’s comments came just one week after the federal interest rates reduced 25 basis points as expected, and he referred to plans to further reduce monetary policy. Gold has risen sharply after this step, since the low interest rates makes the unintegral assets like gold appear more attractive.
In addition to this, concerns about the US tariffs returned to renewal after US President Donald Trump announced a new round of penal customs duties on a wide range of imported goods starting from October 1, the most prominent of which was 100% customs duties on all drug imports.
This step has exacerbated the uncertainty about the economic impact of Trump fees, and has sparked a wave of reluctance to risk in the wider financial markets. This, in turn, motivated some safe haven flows to gold.
The monthly personal consumption expenses on the American economy came in line with expectations, although income and personal spending were higher than expectations. But this data may not prevent the Federal Reserve from continuing to reduce another caution in interest rates at the October meeting.
Investors now expect 88% possibility to reduce interest rates in October, and a 65% probability of another reduction in December.
The Detailed Traders ’Obligations Report issued by the Future Commodity Trading Committee, which shows the speculation mode on gold for the week ended September 23, showed a rise in future gold purchase contracts by individual traders, funds and financial institutions with the aim of speculation by 6030 contracts compared to the past report, while sales contracts increased by 5691 contracts.
The report, which covers the previous period, reflects the return request to buy and sell gold to rise during the last period due to the increasing expectations about reducing interest rates by the American federal.
