Gold prices are heading for a decline for the second week, affected by the rise in the dollar and Treasury bond yields after statements by the Chairman of the Federal Reserve (US Central Bank) that tend toward monetary tightening.
By 0351 GMT today, Friday, gold settled in spot transactions at $1,959.74 per ounce, after falling to its lowest levels since October 18, yesterday, Thursday. US gold futures fell 0.3 percent to $1,964.50.
Gold is also heading to record its worst weekly performance in more than a month, as it has fallen 1.6 percent since the beginning of the week.
Federal Reserve officials, including Chairman Jerome Powell, said yesterday that they are still not confident that interest rates are high enough to end the battle with inflation. This shook the market’s expectations that US interest rates would reach their peak.
After Powell’s comments, 10-year US Treasury bond yields rose from their lowest levels in more than a month, making the non-yielding yellow metal less attractive to investors.
Traders now expect the US Central Bank’s first possible interest rate cut in June next year, instead of previous expectations of a cut in May. High interest also increases the opportunity cost of holding gold.
At the same time, the dollar index is on track to post its best week in two months, making gold more expensive for holders of other currencies.
As for other precious metals, palladium fell 1.3 percent to $979.43 per ounce, which is its lowest level since 2018, and is heading for its worst week in 11 months.
Platinum fell 0.2 percent to $857.61 and is heading for its worst weekly performance since the week ending June 18, 2021. Silver rose 0.4 percent to $22.72.
2023-11-10 05:05:49
#Gold #prices #heading #decline #affected #rise #dollar
