Shares
 
FAQs

Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

FAQs
Shares

Start investing in Australian shares the smart way. Discover ThinkTrader today.

Open Shares Account
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your investing knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

 
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Negative Balance Protection

Trade with peace of mind. Never lose more than what you deposited, no matter what the market conditions.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Gold set for weekly gain as Fed signals slower rate hikes

Agnes Lovasz Agnes Lovasz 25/11/2022
Gold set for weekly gain as Fed signals slower rate hikes Gold set for weekly gain as Fed signals slower rate hikes
Gold set for weekly gain as Fed signals slower rate hikes Agnes Lovasz

US dollar index holding near three-month low underpins gold’s recent advance  

  
Gold prices were slightly higher this week after the minutes from the US Federal Reserve’s last rate setting meeting indicated that policymakers were on the verge of slowing the pace of interest rate increases. 


Spot gold was at 1,751.98 at 10:16 GMT in London on Friday, 25 November, up about 0.2% on the previous week’s close. While gold futures were at 1,751.75 on Friday morning, little changed on the week.  According to most analysts, the spot gold price would need to push higher than 1,800 to confirm the recent upward trend. 

 

The potential for price gains in the yellow metal was limited by traders seeking to lock in returns after recent advances and amid thinner trading during the US Thanksgiving holiday. 


Minutes from the rate-setting Federal Open Market Committee’s 1-2 November meeting that were published on Wednesday, 23 November, showed that “a substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate”. 

 

The smaller rate hikes would allow policymakers to weigh the impact of their tightening cycle so far, according to the minutes.

 

Recent volatility in gold prices
Image source: ThinkTrader 

Recent volatility in spot gold prices 


Also underpinning gold prices, the US dollar traded near a three-month low and was on course for a weekly loss based on the US dollar index (DXY), which tracks the value of the greenback against six of its major counterparts. A weaker US dollar makes gold contracts, priced in the US currency, more attractive to buy for the holders of other currencies. 

 

The dollar index saw little change on Friday morning at 105.88 and it was almost 1% higher than last week’s close. The British pound was near a three-month high against the dollar (GBP/USD), and the euro traded close to a four-month high versus the greenback (EUR/USD). 


Rising US interest rates eroded the safe-haven appeal of holding gold, which pays no interest, in comparison with the US dollar and US Treasury notes. The Fed raised interest rates in four 75 basis point steps to a range of 3.75% and 4.00% by early November from close to zero at the beginning of the year.   

Gold prices have been under pressure since the Fed began its rate hike campaign in March to fight the fastest inflation in more than 40 years. Gold touched a three-month high last week after a rally sparked by a 10 November report on US consumer prices showed inflation may be slowing. US consumer prices rose 7.7% in October from the same month last year, less than 8% anticipated by economists, and compared with an 8.2% annual increase in September, according to the report.  

 

The Fed’s next meeting is on 14 December with futures pricing predicting a 76% probability of a 50-basis point rate hike, according to the CME Group’s FedWatch Tool. 

However, according to recent comments by Fed officials a pause in rate increases is not on the table at the moment. Participants at the rate-setting meeting agreed that inflation remained well above the Fed’s long-term inflation goal of 2% and inflation pressures have shown very few signs of abating, the minutes showed. While economic growth has slowed, “the labour market remained extremely tight, and nominal wage growth remained elevated,” according to the minutes.


Have we seen a turning point for gold, or will the precious metal remain under pressure? Trade CFDs in any direction, long or short, on our award-winning ThinkTrader platform with tight spreads.

 

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

OpenAI upheaval triggers new all-time high in...

By Alejandro Zambrano

21/11/2023

Wake me up when September ends...Could season...

By Carl Capolingua

01/09/2023

The Bull is back, depending on these three co...

By Carl Capolingua

31/08/2023

Investors hold their breath ahead of US data ...

By Carl Capolingua

29/08/2023

ASX Earnings winners vs losers plus lithium s...

By Carl Capolingua

29/08/2023

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top