Market Analysis on behalf of Samer Hasn Market Analyst and part of the Research Team at XS.com

22 February 2024:Gold continues to advance right this moment after the sharp losses it suffered final week, which pushed it to the lowest ranges in about two months, to regain right this moment the stage of $2030 per ounce for spot contracts and the stage of 2042 for COMEX futures.

Gold’s features right this moment include the lackluster efficiency of bond yields, which reversed from their highest ranges in two months, whereas markets are nonetheless carefully monitoring developments in the Middle East with fears of its growth that can not be contained in gentle of latest developments.

After the yield on ten-year Treasury bonds reached the stage of 4.332% final week, it declined yesterday and reached the stage of 4.244%. While the correction in two-year bond yields was extra evident, as they reached the stage of 4.574% yesterday after reaching the stage of 4.721% final week.

While this week shouldn’t be crammed with many vital financial information from the United States, which can give a possibility for gold to keep up its features in the absence of information that fuels fears about the continuation of excessive inflation, as we’ve witnessed over the previous weeks.

However, right this moment we await the minutes of the Federal Open Market Committee (FOMC) assembly held final month to be able to seek for any hidden indication about the subsequent steps of financial coverage makers and their imaginative and prescient of the path of inflation.

Gold additionally advantages from the rise in hope about the risk of the Federal Reserve slicing rates of interest subsequent May, with the chance of a lower rising by 25 foundation factors from 28% yesterday to greater than 34% right this moment, based on the CME FedWatch Tool.

As for the geopolitical facet of the Middle East, issues prevail about the risk of launching floor operations in the metropolis of Rafah in the coming weeks. Therefore, this growth of floor operations into the metropolis full of refugees could threaten to ignite the battle in a approach that is probably not contained by introducing extra actors in the area extra deeply concerned in the battle.