Gold prices recorded their best week in 30 months after US inflation fell below expectations for October, boosting hopes the Fed will ease its bad stance in the next few months. The coming months will ease pressure on the metal market from rising interest rates.

Fed Governor Christopher Waller said Sunday that while banks are considering a slower rate hike, it should not be seen as a softening in the fight against inflation. While October inflation was lighter than expected, it was still well above the Fed’s 2% annual target. This is likely to see banks continue to raise interest rates until there are clear signs that inflation is easing. Rising interest rates are expected to weigh on the metal market in the near future. Spot Gold fell 0.4 percent to $1,764.24 an ounce, while gold futures fell as much as $1,766.95 an ounce. Both devices rose more than $90 last week as the dollar weakened. But the yellow metal is still depreciating against the dollar this year, with prices falling sharply from an annual high of more than $2,000. The metal has lost its safe haven and has also failed miserably as a hedge against inflation this year as rising interest rates pushed up the value of holding non-performing assets.

Emotions for the red metal have been boosted by China, the world’s largest importer, easing anti-COVID-19 measures for the first time ever. The market is now pricing to re-launch in China in 2023, which is expected to boost demand for copper. Red metal supplies are also expected to tighten in the coming months due to disruptions in major producers Chile and Peru.

For today, I encourage investors to either wait to buy gold at $1,755.00 or buy gold at the current price between $1,758.00 to $1,760.00 per ounce. And set taking profit at $1,786.66 and set stop loss at $1,743.00 per ounce.

Analyst: Mr. Long Samnang, Independent Analyst