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Gold prices fall for first time in 5 sessions on higher US dollar – (Update)

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Gold prices fell more than $4 by the end of today’s trade, Thursday, October 12 (2023), for the first time in 5 sessions, with the US currency strong against a basket of major currencies.

US data indicated that the annual inflation rate of last September was confirmed at 3.7%, contrary to expectations, it was 3.6%, while unemployment claims in the US were confirmed at 209 thousand applications.

Yesterday, Wednesday, October 11, gold prices ended trading higher by $12, reaping the fourth consecutive session of gains amid rising geopolitical tensions in the Middle East.

Gold price today

By the end of the session, gold futures for December 2023 delivery were down 0.22%, or $4.3, at $1,883 an ounce.

At 05:45 GMT (08:45 Mecca time), prices of contracts for immediate delivery of gold fell 0.26% to $1,869.5 an ounce, according to data seen by the specialized energy site.

Spot silver also fell 1.05% to $21.81 an ounce, spot platinum was down 2.36% to $869.53 an ounce, and spot palladium was down 3.14% to $1,137 an ounce.

At the same time, it rose Dollar symbol – It tracks the performance of the US currency against 6 major currencies – 0.68%, reaching 106.54 points.

Gold Price Analysis

Growing uncertainty about the path of the U.S. economy pushed policymakers into a new doldrums last month, minutes of the central bank’s September meeting showed, as senior central bank officials reiterated in a series of statements this week.

Federal Reserve Governor Christopher Waller said on Wednesday that higher market interest rates would help the Fed lower inflation and allow the central bank to “take a look” at whether it should raise interest rates again.

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For his part, Brian Lan, managing director of Singapore Financial Brokerage, said, “We are going to end up raising interest rates, and may eventually increase by 25 basis points, which will not have a big impact on the market. , because it is somewhat expected.” Big”.

He added: “But the only thing is that people expect interest rates to be higher… so precious metal prices will remain broadly lower,” the agency said. Reuters.

Higher interest rates increase the opportunity cost of holding non-yielding bullion, which is 9% below the record reached in May.

Investors still see the possibility of a 26% rate hike at the Fed’s December meeting.

Bond market strategists are sticking to their expectations of a cut in U.S. Treasury yields by the end of the year, as well as a view that 10-year bond yields have peaked, disproved within days by two previous monthly Reuters polls.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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