Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Gold prices rise past $2,000 as data-heavy week spurs caution

Published Nov 27, 2023 06:10 Updated Nov 27, 2023 06:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
Gold
+1.83%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com-- Gold prices came close to a one-month high on Monday, rising past key levels as caution before a string of key economic readings fed safe haven demand for the yellow metal.

Weakness in the dollar, amid growing bets that the Federal Reserve was done raising interest rates, also benefited the yellow metal, as did signs of weakening economic conditions across the globe. 

Spot gold rose 0.5% to $2,013.69 an ounce, while gold futures expiring in December rose 0.6% to $2,014.35 an ounce by 00:15 ET (05:15 GMT). Both instruments were now comfortably above the $2,000 level after flitting with the level for the past week.

A settlement above $2,000 is also expected to invite more gains in gold, given that the level was seen as a key resistance point.

Econ data deluge on tap 

But further gains in gold, particularly those driven by safe haven demand, will be largely contingent on the economic readings due this week. In the U.S., PCE price data- the Fed’s preferred inflation gauge- is due on Thursday, as is a second reading on third-quarter gross domestic product

Any signs of weakening inflation and economic growth are likely to push up expectations for an early rate cut by the Fed, which could be positive for gold prices. U.S. consumer confidence and purchasing managers index readings are also due this week.

Beyond the U.S., euro zone inflation data will also be in close focus this week, as will industrial production and retail sales readings from Japan.

Any signs of worsening economic conditions across the globe are expected to drive up safe haven demand for gold. But given that most major central banks have signaled that interest rates will remain higher for longer, the path of the yellow metal still remains uncertain. 

Copper edges lower as China PMIs approach 

Among industrial metals, copper prices fell slightly on Monday after clocking two straight weeks of strong gains. 

Copper futures expiring in January fell 0.3% to $3.8220 a pound, after rising 1.5% last week.

Data on Monday showed a sustained, albeit smaller decline in industrial profits in China, pointing to continued weakness in the world’s largest copper importer. 

The reading put upcoming PMI readings from China squarely in focus, for more cues on business activity in the country through November. PMIs for October had largely missed expectations. 

Still, traders held out for more stimulus measures from Beijing to spur local economic growth, as well as copper demand.

Gold prices rise past $2,000 as data-heavy week spurs caution
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email