Eco
In a scene reflecting the prevailing anticipation across global financial markets, gold prices recorded a slight increase on Thursday. This limited positive movement came after the precious metal touched its lowest level in two months during the previous session's trading, while economic circles await further clarity regarding the future path that the Federal Reserve (the US central bank) will adopt concerning interest rate policies. In detail, spot gold rose by 0.4 percent to reach $4127.40 per ounce by 01:01 GMT, with prices having touched their lowest level since August 5th on Wednesday, affected by the noticeable rise in the value of the US dollar and Treasury bond yields which cast a negative shadow on market movement. In a related context, US gold futures contracts for December delivery climbed by 0.3 percent to record $4150.60. Concurrently, the minutes of the Federal Reserve meeting showed that policymakers were clearly divided last month over the motives and justifications for raising interest rates, as some argued that a rate hike is necessary to fend off the impact of energy price shocks and other potential shocks, while another group leaning toward tighter policies saw this step as necessary and inevitable to protect against emerging demand-driven inflation. Based on data issued by the FedWatch tool belonging to CME Group, market traders expect by only 18 percent that the bank will proceed with a rate hike later this current month, while they continue to expect by 80 percent that the hike will take place next December, noting that higher interest rates typically reduce the appeal of gold, which does not yield a direct investment return to its holders. On a broader scale, International Monetary Fund Managing Director Kristalina Georgieva warned that the global economy is exposed to severe threats due to the continued rise in energy prices and public debt reaching unprecedented record levels, in addition to the serious risks resulting from the investment boom in the field of artificial intelligence, urging all governments to implement strict preventive measures in the realm of fiscal and monetary policies to contain those crises.
