Gold Prices Hit Two-Week Low as Dollar Strengthens

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KUWAIT CITY, Nov 7: Gold touched its lowest point in nearly a fortnight on Tuesday, while the dollar gained strength, with traders keeping an eye out for interest rate cues from a group of Federal Reserve officials set to deliver speeches throughout the week, reports Al-Rai daily. In immediate transactions, gold dropped 0.5 percent to $1,967.09 per ounce as of 1050 GMT, marking its lowest level since October 25. Meanwhile, gold futures declined by 0.8 percent to $1,973.50. The dollar index saw a 0.4 percent rise, causing gold to become pricier for international buyers. Carlo Alberto de Casa, a market analyst at Kinesis Money, noted that the gold market is anticipating more cautious signals from the US Central Bank before making any upward moves. He added that prices are currently consolidating after entering the overbought territory.

In October, gold enjoyed over a seven percent increase, thanks to the surge in demand for the precious metal as a safe haven asset amid conflicts in the Middle East. Investors are now awaiting a series of speeches from various Federal Reserve officials this week, with particular attention on Chairman Jerome Powell, who is scheduled to address audiences on Wednesday and Thursday. As per the CME Fed Watch service, investors believe there is a 90 percent probability that the US Central Bank will maintain interest rates at their December meeting, with an approximately 80 percent chance of a cut next June.

However, Neel Kashkari, President of the Minneapolis Federal Reserve Bank, has indicated that the central bank may need to take additional measures to control inflation. In terms of other precious metals, silver fell 1.6 percent to $22.66 per ounce in spot transactions, while platinum dropped 0.7 percent to $899.10. Palladium experienced a 1.3 percent decline, falling to $1,092.22, marking a 39 percent decrease in its value for the year to date

This news has been read 1924 times!

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