Gold prices suffered losses for the second week in a row, affected by the rise in the dollar and Treasury bond yields, after the US Federal Reserve Chairman’s statements tending to monetary tightening.
Gold fell in spot trading by about 0.9 percent to $1,938 per ounce, recording weekly losses of about 2.6 percent, equivalent to $66 per ounce, and in two weeks the yellow metal suffered losses of about 3.4 percent.
Federal Reserve officials, including Chairman Jerome Powell, said last Thursday 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.
The dollar index, which measures the performance of the US currency against a basket of six major currencies, settled at 105.86 points, recording weekly gains of about 0.8 percent.
2023-11-11 17:53:34
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