On Tuesday, spot gold continues to gain momentum after its unstable performance last week as it declines at significant percentage.
On Monday, Gold futures for December delivery eased by -0.08% to $1,945.65 on September 12’s Asian afternoon session.
Further, the yellow metal spot price rose by 0.02% to $1,922.15 per ounce. While the price climbed by 0.09% to $1,924.07 on Tuesday.
The gold rally became shaky last week as US interest and high dollar rates dented the yellow metal. According to data, gold declined by -1.02% in the five-day peddle, offsetting the 1.03% gain from the August trading session.
On the other hand, as gold gains momentum the US dollar weakens. On Tuesday’s morning delivery, the dollar dipped by -0.01% to a $104.56 decline.
Last week was a great run for the dollar as it soared in its almost six-month reign. However, looking back since Monday, the dollar reversed unlike the last trading sessions.
Concurrently, spot gold may continue its increase this week. But the Federal Reserve’s (Fed) interest rate decision next week can affect the yellow metal’s performance.
According to analysts, the gold will stay in the $1,900.00 range until the Fed’s next week meeting.
Meanwhile, silver futures for December rose by 0.08% to $23.47, while copper futures climbed by 0.15% to a $3.81 increase.
US Interest Hike Attacks Gold
The gold and other metal trading boosted since Monday, yet the Fed rate decisions next week might slash increase roll.
The Fed target is to lower inflation by 2.00%, as it rose by 3.20% from the previous 3.00% reports.
According to experts, they assumed the Fed would keep the September rates on hold. However, any signal of sticky inflation may result in the Fed’s decision to keep increasing rates.
Report shows that over the past twenty years, interest rates grew at its peak.
Through the years, interest spike continues to beat up gold. The recouping stage of yellow metal has been restricted since 2023 started.