Fundamental analysis
20 November, 2023
Gold price is trading lower to at 1977, early Monday.
Investors turned optimistic after Chinese officials vowed to roll out more policy support for the country’s beleaguered real estate sector. This, in turn, is seen as a key factor undermining the safe-haven precious metal, though the downside seems cushioned.
Investors now seem convinced that the Federal Reserve (Fed) is done with its policy tightening campaign and will maintain the status quo at its December 2023 meeting. Moreover, the markets are currently pricing in the possibility that the Fed could begin cutting interest rates as soon as March 2024. This, in turn, dragged the US Dollar (USD) to its lowest level since August 31, which, along with the worsening global economic outlook and geopolitical risks, could lend support to the Gold price.
