Gold rose globally due to the movement in bond yields and the US dollar... Details.

Gold rose globally due to the movement in bond yields and the US dollar... Details.

Global markets are witnessing expectations towards the end of the interest rate hike cycle by the Federal Reserve, despite the statements of Federal Reserve members and their Chairman, Jerome Powell, during the past week, all of which indicated continued monetary tightening by the Bank and its readiness to further raise interest rates when needed .

The dollar fell and the decline in US bond yields, in addition to the change in the markets’ outlook towards the future of interest rates, is the appropriate environment for a recovery in gold prices, but the rise in the precious metal was less than expected compared to other commodities .  

The main reason behind this was investors’ shift to high-risk assets such as US stocks and other commodities, which limited gold’s gains in the markets, especially since the support that gold received from geopolitical tensions has declined since last week after fears of an expansion of the war in the country diminished. The Middle East for investors .  

The markets are awaiting the release of data on the US economy related to the producer price index for the month of October, which is an index measuring inflation from the point of view of producers and manufacturers, and the index reading is expected to decline to 0.1% from the previous reading of 0.5% .  

Also, US retail sales data for October, which is a measure of consumer spending rates, is expected to decline by -0.3% from a previous rise of 0.7% .  

Recently issued economic data from the US economy confirms the idea that the economy has begun to be affected by the interest rate hikes that began since March of last year, and thus spending rates declined and inflation began to decline, which may end the idea of tightening monetary policy .  

Gold is the first beneficiary of this situation because the idea of continuing to raise interest rates and monetary tightening was limiting gold’s gains and making the price stability above the level of $2000 per ounce difficult for gold .