Gold prices fell by about $8 during today’s trading, Wednesday, October 4, 2023, continuing to hemorrhage losses for the eighth session in a row with the rise in the US currency and Treasury bond yields.
The precious metal was trading near its lowest levels in 7 months, which it recorded in the previous session, as the US dollar and bond yields rose, supported by strong job data in the United States, indicating that there is room for further tightening of monetary policy.
Gold prices ended their trading yesterday, Tuesday, October 3, with a decline of about $6, with the US currency rising against a basket of major currencies near its highest levels in 10 months.
Gold prices today
By 06:56 AM GMT (09:56 AM Mecca time), prices of gold futures contracts – for delivery in December 2023 – fell by 0.42%, or the equivalent of $7.7, to reach $1,833.80 per ounce.
The prices of contracts for immediate delivery of gold fell by 0.23%, to record $1,818.84 per ounce, according to figures seen by the specialized energy platform.
While the spot price of silver metal decreased by 0.86% to $20.99 per ounce, while the spot price of platinum fell by 0.85%, to reach $864.39 per ounce, and the spot price of palladium fell by 1.54%, to record $1,160.99 per ounce.
At the same time, it rose Dollar index – which monitors the performance of the US currency against 6 major currencies – by 0.15%, reaching 107.16 points.
Gold jewelry in an exhibition – archive
Gold price analysis
Gold prices fell yesterday, Tuesday, for the seventh session in a row, touching their lowest levels since March at $1,813.90, with the US dollar rising on the back of data showing an unexpected increase in US job opportunities in August.
Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, said the ongoing sell-off in US Treasuries is keeping gold prices under pressure, but since most of the moves have been priced in, there should not be any further corrections in bullion prices.
He added: “We are at the end of the cycle of raising interest rates by the Federal Reserve, with the possibility of another 25 basis points, and I think the matter will end after that. The recent moves are very painful, and this is what we are witnessing now,” the agency reported. Reuters.
The yield on US 10-year bonds rose to their highest levels in 16 years, reducing demand for non-interest-bearing bullion.
Federal Reserve officials view rising long-term Treasury yields as evidence of the success of their monetary policies.
US Treasury Secretary Janet Yellen said on Tuesday that she was very optimistic about the economy’s prospects, adding that inflation was falling in the short term and that the labor market was “very strong.”
Major global automakers on Tuesday reported a rise in new vehicle sales in the United States for the third quarter, supported by resilient demand for the latest models and improving supplies.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 873.35 tons on Tuesday.
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2023-10-04 07:19:24
#Gold #prices #decline #currency #rises #Energy
