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Market News The international gold price looks at US$1,838

The international gold price looks at US$1,838

On November 9, the international gold price continued to hit a new high since September 7 to US$1,827.17 per ounce. The market outlook looked at US$1,838, supported by the weakness of the US dollar index and the fall in US bond yields. However, the rise in gold prices is limited because Fed officials assess how many more jobs the economy can add.

2021-11-09
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On Tuesday (November 9), the international gold price continued to hit a new high since September 7 to US$1,827.17 per ounce. The market outlook looks at US$1,838, supported by the weakness of the US dollar index and the fall in US bond yields. However, the rise in gold prices is limited because Fed officials assess how many more jobs the economy can add.

At GMT+8 13:36, spot gold fell 0.04% to US$1823.31 per ounce; the main COMEX gold contract fell 0.16% to US$1825.0 per ounce; the US dollar index fell 0.16% to 93.895.


The U.S. dollar index is expected to fall for the third consecutive trading day, which will help reduce the cost of precious metals to holders of other currencies; the yield on the 10-year U.S. Treasury fell by 1.7 basis points to 1.472%, reducing the chance of holding gold as a non-yielding asset cost.

The focus of Fed officials has turned to the debate around monetary policy. As the Fed slows down its asset purchases and prepares for a rate hike as soon as next year, this debate will heat up in the coming months. The core of the debate is to assess how many more jobs the economy can add, and how long the status quo can be tolerated if inflation has exceeded a comfortable level.

St. Louis Federal Reserve Chairman Brad reiterated his view that the Fed will need to raise interest rates twice next year because the US job market is already very tight and rising salary costs are exacerbating inflation.

Chicago Fed President Evans reiterated that the current surge in inflation may be temporary, and as supply-side pressures are resolved, inflation will subside, but it sounds like he is not as confident in this statement as before.

On the hourly chart, the price of gold is in the upward wave iii starting from US$1,759. It is expected to rise above the 76.4% target of US$1830 and further challenge the 85.4% target of US$1838. Wave iii is a sub-wave of the upward wave (iii) that started at $1721.

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