Gold prices made solid gains on Tuesday, showing a rebound from moderate losses seen on Monday.
Prices touched a high of $2,007 an ounce, compared with a low of just over $1,966 an ounce Monday. The latest action shows that prices have pushed higher compared to the end of the previous week ending November 17th.
Figures released Tuesday showed that Canadian inflation for the year-to-date 2023 came in slightly below the market’s expectations, adding weight to the probability that interest rates will not be raised from the current 5%. In the current monetary environment, the prospect of no further rate hikes among central banks has provided a supportive element for gold prices.
The US dollar also continued to come under pressure against other major currencies on Monday and Tuesday, providing a bullish input for dollar-denominated gold prices.
Looking ahead, Wednesday will see the release of US durable goods orders for October, followed by the UK’s Autumn statement. Then on Thursday, the markets will be watching for German manufacturing PMI flash data. Recent monthly PMI data from Germany have shown values below 50, indicating a contraction in manufacturing activity. And although the figures have been improving progressively since July, they still point to weakness in Germany’s economy for the time being.
If gold prices do manage to hold above the $2,000 an ounce level, gold bulls may be watching for a test of the recent high of $2,010 seen October 29th.
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