Gold drops 1st time since early October – Sabayik Co – Yellow metal’s price affected by dollar strength

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KUWAIT CITY, Oct 25, (KUNA): The gold price posted first loss since start of October on Friday dropping by one percent and closing at $1,164 per ounce, according to Sabayik Al-Kuwait Company.

The yellow metal’s price was affected by the USD strength against other hard currencies, namely the euro, where investors’ appetite shifted to stock and finance markets.

The gold performed well at the past week start, trading at $1,176 per ounce and posted a new record hike, reaching $1,182 per ounce. However, with opening of the US bourses, it shed the gains, falling to $1,164 per ounce. Moreover, pre-closing purchases had stemmed it from moving farther downward.

Sabayik predicted continuing pressure on the gold in the coming days till upcoming meeting of the American Federal Reserve Bank, the central bank, due in the week’s middle. “We may see a new scenario after publicizing the meeting outcome; particularly if it has not resulted in lifting the US interest rate,” said the Kuwaiti company, which trades in precious metals.

Gold is forecast to be bullish in the coming weeks, particularly if the USD interest rate fails to move, it said, noting that there is no reason for new falls other than the expected decision by the American central bank.

Silver followed the gold suit, closing at $15.8 per ounce in the New York bourse — six cents lower than the opening level. Its prices are expected to continue to fluctuate, because it is connected to electronic trades and profit generation. The silver may rise to $16 per ounce during the week, but it may turn bearish due to instability.

Platinum dropped closing at $1,001 per ounce, a $14 difference from the opening, while palladium rose USD three, reaching $694 per ounce.

Local markets were calm early last week. Purchases revived with the prices’ fall, while purchases of the raw gold and other precious metals climbed.

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