International markets: Gold makes gains amid investor intervention and dollar weakness

International markets: Gold makes gains amid investor intervention and dollar weakness
International markets: Gold makes gains amid investor intervention and dollar weakness

Gold prices achieved the highest level in a week in light of the weakness of the dollar, after the minutes of the Federal Reserve meeting, the “US Central Bank” for the month of November, gave indications that it may soon slow the pace of raising interest rates.

And gold rose in spot transactions 0.5 percent to 1758.14 dollars an ounce, while gold futures contracts in the United States rose 0.7 percent to 1758.50 dollars.

He showed the minutes of the meeting held on the first and second of November

A “significant majority” of the Bank’s policymakers agree that “it may soon be appropriate” to slow the pace of rate hikes.

The dollar index remained declining after falling 1 percent the night before last, making the yellow metal cheaper for buyers abroad.

European stocks

European stocks opened little changed today, Thursday, after the minutes of the Federal Reserve’s meeting, the “Central Bank of America,” indicated a calming pace of raising interest rates, while investors await new indicators from the European Central Bank.

The Stoxx 600 index of European shares fell 0.03 percent by 0808 GMT, amid low trading volumes, possibly due to the Thanksgiving holiday in US markets.

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Remy Cointreau fell 2.7 percent after Remy Martin cognac maker said its results for the second half of the year would reflect a return to normal consumption trends after two years of “exceptional growth”.

Elekta shares fell 5.3 percent after the radiotherapy equipment maker warned of damage to its margins in the third quarter due to uncertainty about macroeconomic conditions and supply chain problems.

An improved climate of trust

In addition, a survey showed that confidence in the business climate in Germany improved by more than expected in November, and pessimism about the coming months receded to a large extent after the largest economy in Europe recorded optimistic indicators.

The Ifo Institute stated that the reading of its business climate index rose to 86.3, compared to 85.0 in a Reuters poll of analysts, after adjusting the October reading to 84.5.

The improvement in expectations comes after unexpected economic growth in the third quarter, and after the full filling of gas tanks in Germany reduced fears of a supply crisis this winter. Despite this, the government expects a recession next year, and that the economy will contract by 0.4 percent.

The dollar is going down

The dollar fell as investors flocked to risky assets after expectations of a slowdown in the pace of the Federal Reserve’s rate hike.

The upcoming minutes of the meeting of the US Central Bank’s Monetary Policy Committee, which was held on the first and second of November, revealed that officials are very convinced that they can move now with smaller steps in raising interest rates.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, fell 0.14 percent to 105.75, after falling 1 percent in the evening.

The US central bank raised the key interest rate by 0.75 percentage points this month for the fourth consecutive time in an effort to rein in soaring inflation.

But lower-than-expected US consumer price data boosted hopes for a more moderate rate hike, and as a result the dollar index fell 5.1 percent in November, heading for its worst monthly performance in 12 years.

The Japanese yen was one of the best performing major currencies against the dollar, rising 0.5 percent to 138.88.

The euro rose 0.39 percent to $1.0435, while the pound sterling recorded, in its latest trading, an increase of 0.43 percent to $1.2090. And sterling jumped 1.4 percent in the evening after the preliminary British economic activity data exceeded expectations, although it still showed contraction.

The Japanese index closed at the highest level

The Nikkei index in Japan closed at the highest level in more than two months, tracing the impact of Wall Street, which recorded gains the night before last. The Nikkei index closed up 0.95 percent at 28,383.09 points, the highest level since September 13 ( September), and the broader Topix index jumped 1.21 percent to 2,018.80 points.

The minutes boosted sentiment, said Chihiro Ota, assistant general manager of investment research and investor services at SMBC Nikko Secure, as global investors flocked to Japanese stocks.

Chip-related heavyweights were the best performers on the Nikkei index, as Tokyo Electron and Advantest shares jumped 3.55 and 4.56 percent, respectively.


The article is in Arabic

Tags: International markets Gold gains investor intervention dollar weakness

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