Logo of Phnom Penh Post newspaper Phnom Penh Post - Price of gold rising on weakening US dollar

Price of gold rising on weakening US dollar

Content image - Phnom Penh Post
PPLS business manager Chhea Chhayheng.

Price of gold rising on weakening US dollar

The greenback weakened in early market session trade as gold approached seven-month highs this week, with signs of a slowing jobs market increasing the likelihood of softer US inflation data.

“The gold market was at one point just $25 away from its key resistance $1,900 an ounce level on Friday,” Kitco News’ Anna Golubova reported.

And Investing.com’s Ambar Warrick said prices for the yellow metal on Tuesday “hovered near seven-month highs as markets awaited more cues on US monetary policy from an upcoming speech by Federal Reserve Chair Jerome Powell, as well as key inflation data.”

After Federal Reserve chair Jerome Powell spoke on Tuesday, other key data this week includes the release of US CPI and jobless figures on Thursday.

Golubova said: “Inflation is one of the key reports that gold will pay close attention to ... especially after the Fed minutes from the December meeting showed that US central bank officials feel more work needs to be done to battle price pressures.

“Market consensus calls are looking for the annual inflation number to slow to 6.5 per cent in December from November’s 7.1 per cent print.”

Investing.com’s Peter Nurse said: “Traders are now factoring in the Fed toning down its aggressive monetary tightening policy, with a 25-basis point hike now widely expected in February, down from an increase of 50 basis points in December.

“This followed the release of the monthly official US jobs report [last] Friday, which showed nonfarm payrolls rising by a relatively benign 223,000 jobs in December, while average hourly earnings climbed 0.3 per cent, smaller than expected and less than the previous month’s 0.4 per cent.

“Additionally, US services industry activity contracted for the first time in more than two and a half years in December, more evidence of a cooling economy.”

Gold prices were moving in an uptrend in the daily charts from $1,730 to $1,875 per ounce on Monday, says PP Link Securities business manager Chhea Chhayheng, testing the November 2021 resistance of $1,875 per ounce.

And if gold prices fail to break the resistance, it would rebound to $1,800, the key support level.

Bannockburn Global Forex managing director Marc Chandler told Kitco News that “as long as the yellow metal holds above the $1,825-$1,830 area, the upside looks favoured”.

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Siem Reap airport to close after new one opens

    After the new Siem Reap-Angkor International Airport (SAI) opens in October, the existing complex serving the northwestern province will be “completely closed”, according to State Secretariat of Civil Aviation (SSCA) spokesman Sin Chansereyvutha. SAI developer Angkor International Airport Investment (Cambodia) Co Ltd (AIAI) last month

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Rare plant fetches high prices from Thai, Chinese

    Many types of plants found in Cambodia are used as traditional herbs to treat various diseases, such as giloy or guduchi (Tinospora cordifolia) or aromatic/sand ginger (Kaempferia galangal) or rough cocklebur (Xanthium Strumartium). There is also a plant called coral, which is rarely grown

  • Ministry using ChatGPT AI to ‘ease workload’; Khmer version planned

    The Digital Government Committee is planning to make a Khmer language version of popular artificial intelligence (AI) technology ChatGPT available to the public in the near future, following extensive testing. On March 9, the Ministry of Post and Telecommunications revealed that it has been using the

  • Cambodia returns 15M Covid jabs to China

    Prime Minister Hun Sen said Cambodia will return 15 million doses of Covid-19 vaccines to China for donation to other countries. The vaccines in question were ordered but had not yet arrived in Cambodia. While presiding over the Ministry of Health’s annual meeting held on