Gold slips on receding geopolitical concerns
gold closed with a loss of 1.08% at $1938.28 Friday as safe haven demand for the metal is weakening due to no further escalation in the ongoing Hamas-Israel war. Israel has agreed to four-hour pauses in the Gaza strip to allow humanitarian aid and assistance. It has been reported that Hamas and Israel are negotiating over release of the hostages, pauses and aids.
The yellow metal tumbled 2.80% on a weekly basis.
One of the most important events ending November 10 was the US Federal Reserve Chair Powell's remarks on November 9 in an IMF organized panel discussion on 'monetary policy challenges in a new economy'. He said that they were not confident that monetary policy has reached a stance sufficiently restrictive to bring down the inflation to the desired 2% goal. He added that the Federal Reserve will not hesitate to hike rates further if appropriate.
He warned against inflation headfakes. The US yields rebounded as a disappointing 30-year auction also weighed on the bonds.
The week ending November 10 was a data light week. University of Michigan sentiment data released Friday came in at 60.40 Vs the estimate of 63.70.
The data fell to the lowest level since December 2022.University of Michigan one-year inflation expectations at 4.40% topped the forecast of 4%, so did the 5-10 year inflation expectation data which rose to a 12-year high reading of 3.20% Vs the estimate of 3%. The UK economy was able to dodge recession in 3Q as per the preliminary data. The economy stagnated in the third quarter, which can as such be taken to be better than the expectation of a decline of 0.10% QoQ.
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