Your Morning Gold Update: Gold dips before the Fed meeting🌞📈

1 Nov 2023 — 3 min read

Hi, and welcome to your Morning Gold Update on Wednesday 1st of November 2023. Here's a brief summary of news on gold and silver prices, economic indicators, and the geopolitical situations that move the market. Let's dive in.

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Fact of the Day: 1 November 1961 🌟On this day in 1961, a group of countries came together to create the London Gold Pool. Their goal was to keep the price of gold at $35 per ounce. They did this to support a financial system, called the Bretton Woods System, where the value of money was tied to gold. Over the years, the world of gold and other precious metals has changed a lot, of course, making it a very interesting area to explore.

Gold Price Movement 🥇

Gold has been trading between $1,960 and $2,010 over the past week, marking its third consecutive session of decline. The price dropped below $1,980/toz on Wednesday. Despite the ongoing Middle East tensions supporting gold prices, investors are closely watching the Federal Reserve's upcoming policy decision. The market anticipates volatile movement post the Fed's announcement, and momentum oscillators* remain bullish. 📈

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Momentum oscillators* are tools (momentum indicators) used in technical analysis to help you understand the strength and direction of price trends. In our case, these tools are indicating that gold is likely to see its price go up in the near future. In other words, they're "bullish" on gold, which is a term used to describe a positive outlook on prices.

Silver Price Update 🥈

Spot silver dropped to $22.5/toz, its lowest since mid-October. Much like gold, investors are on their toes awaiting the Federal Reserve's monetary policy decision. The European Central Bank's tightening cycle also appears to have stalled, providing some support to the silver market. 📉

Geopolitical Influences 🌍

The Middle East conflict has a significant impact on precious metals. Israeli airstrikes on a refugee camp in Gaza resulted in 50 Palestinian deaths, including a Hamas commander. This situation supports the broader appeal for gold and silver as safe-haven assets. Tensions are escalating, with Israeli authorities rejecting ceasefire calls and preparing for ground action in Gaza. 🚨

Economic Indicators & Analysis 📊

Eurozone Inflation Trends: The rapid decrease in inflation rates, now at 2.9%, is expected to stabilize. This is particularly important for precious metals traders as inflation often positively correlates with gold and silver prices.
Central Bank Decisions: No change is expected in interest rates from the US Federal Reserve, and the Bank of England, which could provide stability to precious metal prices.
US Economic Indicators: The 10-year US Treasury yields have rebounded to 4.91%, suggesting the Fed might maintain higher interest rates for a prolonged period. Higher bond yields could act as a substitute for policy tightening.

What's Happening Today? 📅

Caixin Manufacturing PMI: Scheduled for 02:45 AM, this indicator from China could impact global trade and, by extension, gold prices.
ISM Manufacturing PMI and JOLTs Job Openings: Coming out at 03:00 PM, these could reflect the health of the US economy and influence the Federal Reserve's future decisions.
Fed Interest Rate Decision: The big one at 07:00 PM. A hawkish stance could see a dip in gold and silver prices, while a dovish outlook might lift them.
Fed Press Conference: Scheduled for 07:30 PM, any hints towards future monetary policy could cause immediate market reactions.

Conclusion 🎬

Today is packed with high-impact economic events, especially the Federal Reserve's policy announcement. Keep a close eye on these as they could significantly influence gold and silver prices.

That's it for today! ✨

Stay golden! 🥇

DISCLAIMER: Please, note that the information provided in this personal post is a summary of news about gold, aggregated from multiple online sources. It is intended for informational purposes only and should not be construed as investment advice. Always consult with a qualified financial advisor before making any investment decisions.

Jacek (Jack) Iciek

Precious metals & FX trader by day. By Proud Dad all day long. Love 🍔🥩🍕🍺 Currently on a mission to lose weight, become healthier and and grow his website from 0 to 10,000 subscribers.