Gold goes down as the dollar goes up

Gold prices fell on Thursday, with the dollar recovering slightly as market participants await further guidance from next week’s Federal Reserve meeting on interest rate hikes.

At 0248 GMT, spot gold was down 0.2% to $1,783.50 an ounce, after surging more than 1% yesterday, Wednesday, supported by the decline in the dollar and US bond yields. U.S. gold futures fell 0.2% to $1,795.10.

The dollar index rose 0.2%, making the greenback more expensive for buyers of other currencies.

Most investors expect the Federal Reserve to raise interest rates by 50 basis points at its last meeting of 2022, scheduled for December 13-14. Market participants are also awaiting the November CPI report, due for release on December 13th.

“If the Fed’s result (results meeting) is in line with expectations, the market will be relieved that it is not worse than expected,” TastyTrade’s Ilya Spivak said. “The dollar may go down and that will push gold up a bit,” he added.

In other precious metals, silver fell 0.6% to $22.60, platinum lost 0.2% to $1,000.67, while palladium settled at $1,844.20. .