Quoted from Bisnis.com, JAKARTA – Gold prices weakened at the close of trading on Thursday (October 13, 2022). However, the weakening of the US dollar acted as a catalyst, preventing gold prices from falling more sharply.
Gold prices had previously plunged below the psychological level of US$1,650, but later rebounded, recovering most of their earlier losses as the US dollar declined following stronger-than-expected US inflation data, as reported by Antara.
Gold prices on the New York Comex Exchange edged down slightly by US$0.5 or 0.03 percent to close at US$1,677.00 per ounce, after earlier dropping nearly US$29 to a two-week low of US$1,648.40.
Analysts from Monex Investindo Futures (MIFX) stated that gold has the potential to move higher in the short term amid expectations of a weaker US dollar, as markets digest the release of the FOMC meeting minutes, which were perceived as less hawkish.
“Although policymakers agreed that they need to move toward a tighter policy stance and maintain it for some time, several members emphasized the importance of recalibrating the pace of further policy tightening to control the risk of significant negative impacts on the economic outlook,” explained the MIFX analyst.
The US dollar weakened after the latest inflation data from the US Department of Labor showed that the Federal Reserve remains far behind in its fight against price pressures.
The dollar index, which measures the greenback against the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc, fell for the first time in seven days after reaching a two-week high of 113.835. The US Department of Labor reported on Thursday (October 13, 2022) that the US Consumer Price Index (CPI) rose 0.4 percent in September on a seasonally adjusted basis, following a 0.1 percent increase in August. Overall consumer prices rose 8.2 percent year-on-year, higher than economists’ forecast of 8.1 percent.
Stronger-than-expected inflation data boosted market expectations for further interest rate hikes by the Federal Reserve at its November meeting. The central bank has raised interest rates by 300 basis points since March to curb runaway inflation and is expected to add another 125 basis points before the end of the year. Economists also anticipate further increases in 2023, rendering discussions of a “peak inflation” scenario irrelevant for now.
“Policymakers have made it clear that more than one data point is needed to influence their stance, but investors never wait that long,” said OANDA analyst Craig Erlam, questioning the premature risk-on rally in markets expecting a Fed rate cut. Gold also found some support after the US Department of Labor reported that initial jobless claims rose by 9,000 to 228,000 in the week ending October 8. The median estimate among economists was 225,000 new claims, while the four-week moving average rose to 211,500.
Source:
https://market.bisnis.com/read/20221014/235/1587490/harga-emas-hari-ini-jumat-14-oktober-2022-pelemahan-dolar-as-jadi-katalis
