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Gold
Source: Newsmaker.id
Gold prices rose more than 1% in Wednesday's trading (Sept. 16), supported by a weakening US dollar, falling oil prices, and a correction in Treasury yields. Spot gold climbed 1.3% to around US$4,346.30 per troy ounce, while the US gold contract for December delivery strengthened to US$4,387.60.
The drop in oil prices following a two-day rally helped alleviate some inflation concerns, while a weaker US dollar made gold cheaper for holders of other currencies. Declining US bond yields also eased pressure on bullion.
However, gold's future direction remains heavily dependent on the Federal Reserve's decision. The market anticipates a roughly 93% probability that the Fed will raise interest rates by at least 25 basis points, with primary attention focused on the press conference by Fed Chair Kevin Warsh.
Interest rate hikes typically exert pressure on gold by increasing the opportunity cost of holding non-yielding assets. Conversely, a large fiscal deficit and concerns regarding the dollar's value continue to support demand for hard assets like gold.
Newsmaker Analysis: Gold's rebound above US$4,340 indicates that short-term pressure is easing, though the trend remains highly sensitive to the FOMC outcome. If Warsh signals the possibility of further rate hikes, gold risks a renewed correction. Conversely, if the Fed adopts a more cautious tone, a weaker dollar and lower yields could pave the way for gains toward the US$4,380–US$4,400 range. (arl)
Source: Newsmaker.id