Gold had tremendously strong gains today of just over $20 per ounce in both physical gold as well as futures. As of 4:00 PM EST gold futures basis the December contract is currently up $20.80 or + 1.05%, and fixed at $2001. On its first day as the most active Comex contract, February gold (GC G24) gained $20.60 or + 1.03% and is currently fixed at $2021.10.
First-day notice for gold’s current most active contract month, December 2023
(GC Z23) will occur on November 30. Long-term trend traders are already beginning to initiate new trades in the February 2024 contract (GC G24), as it will become the next most active contract month.
As of 4:35 PM EST, gold futures basis most active contract (December 2023) is fixed at $1984.10. However, the December contract will soon expire as the until the first notice day advances. This is why we are focusing on the February 2024 Comex contract which is currently fixed at $2004.20. Both contract months had a gain of just under $20 per ounce.
Yesterday's significant drop in the dollar was directly related to the release of the October CPI inflation report, revealing muted growth, similar to September's low reading. Despite forecasts by major analysts and economists predicting higher levels, the actual inflation remained below expectations.
Inflation vis-à-vis the CPI (Consumer Price Index) came in unchanged when compared to the previous month. This provides the Federal Reserve with more data that could slow the oncoming of further rate hikes. The CPI increased 3.2% year-over-year; however, the inflation report came in under expectations of Wall Street projections.
Chairman of the Federal Reserve Jerome Powell’s statements during two speeches this week covered the complexities of the thought process Fed members face with their monetary policy and the ramifications they present.
Chairman of the Federal Reserve Jerome Powell made statements today that relieved some of the pressure that was brought on yesterday by Fed officials that were perceived as bearish for gold. Although his comments did aid in gold rising in price today he continued to be ambiguous about future Fed actions.
Gold prices declined today as multiple officials of the Federal Reserve have suggested the possibility of additional rate hikes. This as the geopolitical risk premium that had been prominently factored into gold’s price is beginning to diminish. Over the last few days, multiple officials of the Federal Reserve have commented on the Fed’s current monetary policy.
After leaving interest rates alone at last week's FOMC meeting, investors are focusing on upcoming comments by multiple Federal Reserve officials this week including Chairman Powell.
