In comparison with the state of the price in the last week, which is referred to as the 40th in the order of 2023, and the current week in the second half of the 41st week of 2023, there was a strengthening of the price of gold on the commodity market. Gold prices thus reached their two-week highs on Thursday, October 12, 2023. According to economic correspondents, this state of affairs occurred due to investors’ fears about the possible expansion of the war in the Middle East, where the war between the State of Israel and the Palestinian movement Hamas has been going on since Saturday 7 October 2023, and also due to the decrease in the yields of US government bonds after the drop in the exchange value of the US dollar (USD). Likewise, participants in the financial markets as part of gold transactions on the commodity market are waiting for a clear signal from US central bankers regarding a possible further increase in interest rates at the upcoming meeting of the Federal Open Market Committee of the central American bank FOMC FED (Federal Open Market Committee Federal Reserve System), which is to be held traditionally as a two-day event from 31.10. until 1/11/2023 in Washington, DC.
Currently, during the European Thursday morning on 12/10/2023, at approximately 10:39 CET, the price of investment gold was moving within the COMEX (Commodities Exchange Centre) commodity market at a value of USD 1,893.20 per troy ounce with a daily increase of + 0.31% of its price. This price, in an annual comparison according to technical analysis data, indicates that the value of investment gold has increased by + 7.5% of its price over the last 52 weeks, but compared to the price at the beginning of this year 2023, it still shows a negative value, a decrease of – 0.91% of its price compared to the price that the commodity market reached at the end of last year 2022. The current price of gold was reached when the exchange value of the American dollar (USD) fell and on the indicated day and time the value of the USD according to the dollar The DXY index (US Dollar Currency Index) was at USD 105.68 points with a daily decrease of -0.13% of the point value according to this index, which compares the value of the USD with the other six major world currencies.
According to brokerage analysts and commodity market financial strategists, it is so clear that investors, traders and other financial market participants have come to believe that with the decline in the exchange value of the USD and the potential outlook for further interest rate hikes in the United States in the future, and thus a possible resumption of rise in the exchange value of the USD, now is the right time to buy investment gold. With this attitude, these financial market participants created a so-called investor sentiment indicating a trend of strengthening the price of gold within the framework of foreign exchange market business operations. Investors’ consideration of a further possible increase in interest rates was supported by the detailed minutes from the last September FOMC FED meeting published yesterday on 11/10/2023, referred to as the FED minute book, where the FOMC members agreed that the inflation rate in the US is still high and does not correspond to the two percent inflation target of the FED , therefore FOMC members see one increase by the end of this year, 2023, as necessary, but taking into account the current data of the US economy. In this context, however, only 26% of surveyed investors see the likelihood of an increase in interest rates by the FOMC FED in the USA.