The price of investment gold in spot trades on the global commodity market at the end of last week, on Friday 10/27/2023, rose during this trading day to a value of 2009.29 USD per troy ounce. According to economic correspondents linked to brokerage analysts and commodity market financial strategists, behind this rise in the price of investment gold in the global commodity market spot trades is the concern of investors about the ongoing war in the Middle East between Israel and the Palestinian movement Hamas.
It was the fears of investors, traders and other commodity market participants about the further development of the conflict, when there is a real threat of the expansion of this war conflict in the entire Middle East region, that pushed the price of gold above the price limit of USD 2000 per troy ounce. However, currently during the European morning of Wednesday, November 1, 2023, at approximately 5:51 CET, the price of investment gold in the spot trades of the global foreign exchange market has already fallen below the price threshold of two thousand American dollars (USD) per troy ounce. According to analysts of the foreign exchange market and financial strategists of the gold trade, behind this decline lies the standard profit taking by investors and the still very strong exchange value of the US dollar, as the main world currency of the global commodity market, at a time of growing nervousness among participants in the world financial market from today’s announcement of the central bank’s decision of US bankers after the two-day FOMC FED (Federal Open Market Committee Federal Reserve System) meeting.
Thus, on the indicated day and time, investment gold was traded at a value of USD 1985.30 per troy ounce in the spot trades of the COMEX (Commodities Exchange Centre) with a daily decrease of -0.45% of its previous price. This current price of investment gold, according to technical analysis data, thus represents a total annual increase of +14.31% of its price over the last 52 weeks, from which since the beginning of this year 2023, the price of investment gold has increased by +3.91% of its price compared to the price at the end of last year 2022. The current price of gold as of today’s European Wednesday morning on 1/11/2023 at the indicated time reached this amount in a situation when the exchange value of the US dollar (USD) measured by the dollar index DXY (US Dollar Currency Index) was strengthening again and was at point balance of USD 106.77 point with a daily growth of +0.10 percent of its point value so far according to this index, which compares the value of the USD with the other six major world currencies.
The global currency pair of the single European currency, the euro (EUR) and the US dollar (USD), as the main world currency of the commodity markets, moved within the framework of forex trades of the foreign exchange market on the indicated day and time at the mutual exchange rate at a value of 1.057 USD per EUR with the previous by a daily drop of EUR by -0.076% against the USD. According to economic news reports, the attention of investors and other participants in the financial markets in the second half of this 44th week of 2023 is now focused on the announcement of the US Department of the Treasury on refunds and Wednesday’s decision of the FOMC FED on monetary policy, which will be followed by the monthly meeting on Friday, November 3, 2023 US employment report. Fed Chairman Jerome Powell is likely to stick to the old scenario of depending on data on the path of rates set by the Fed’s FOMC, while maintaining expectations for the latest interest rate hike in December, said Kelvin Wong, chief market analyst for Asia Pacific. OANDA. On the basis of these facts, financial strategists of the commodity market rather expect stagnation in the price of investment gold with a slight decrease in its price.