NMBU´s Precious Metals Diary

  Gold holds strong despite headwinds! Gold is heavily influenced by the US dollar now, and if it is signaled next week that there will be 3 interest rate cuts in 2024, this will lead to a new wave of gold buying. As mentioned in the headline, gold is facing headwinds, including the strong US dollar and high bond yields. On Friday, gold reached record highs due to a weaker US dollar and lower bond yields, but now the tailwinds have turned, and inflation has stagnated, thus also reducing expectations for 3 interest rate cuts next year. Considering the high levels of the US dollar and bond yields, it is surprising that the price of gold has remained high, but there is no doubt that the upward momentum has stalled. The Federal Open Market Committee will hold a meeting next week on interest rate cuts, and it is hard to believe that rates will decrease with the recent high inflation in the US. The tension between what the market says and what the Fed has said has also influenced...

    Record closing week for gold! Week 9 concludes with optimism in the gold market, but analysts still recommend caution regarding gold next week. Purchases of precious metals increased on Friday as production activity in the market was slower than anticipated. This also demonstrates the significant potential gold possesses.   Gold futures April futures have been traded at $2095.20 per ounce, marking a 2% increase from the previous week. This is the best performance in 2024 and has resulted in a new record closing price. Analysts do not see this uptrend supported by strong fundamental factors and believe that profit-taking and volatility could push prices back. They also add that they believe the price in the next week will be maximum $2,088 per ounce. This analysis is also supported by economists on Wall Street, who have begun to doubt that there will be further interest rate cuts. On the contrary, perhaps the next move could be an interest rate increase, ...