Gold is stabilising around $1,750 an ounce after a quieter week of macroeconomic and geopolitical news enabled investors and traders to assess the true value of the precious metal.
While the Federal Reserve is still almost certain to raise interest rates again in December, this week’s publication of the Open Market Committee’s November minutes gives hope that there is less need for further 75 basis point hikes.
As such, gold has been able to hold onto the bulk of this month’s gains and does now look to have established a new trading range.
The potential contagion from the collapse of crypto exchange FTX so far looks to be contained but the prospect of more crypto companies failing is supportive for gold, with investors wary of investing money into an asset class that has shown itself to be anything but a safe haven.
With this week’s chance to pause for breath, gold is now likely to continue trading sideways as investors position themselves for the middle week of December which will see first the latest US inflation figures followed by the Fed’s latest interest rate decision.
As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.
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