Gold prices experienced a decline today, Monday, as the US dollar surged to near a six-month high. This strengthening of the dollar, coupled with diminishing expectations of a US interest rate cut in December, has put downward pressure on the precious metal.
In spot trading, gold fell by 0.3% to $4051.48 per ounce. Conversely, December gold futures saw a rise of 0.7%, reaching $4049.50.
The dollar’s ascent follows the release of economic data indicating a robust increase of 119,000 jobs in the United States during September. This positive employment figure bolsters the likelihood that the Federal Reserve will refrain from cutting interest rates in the coming month. Current market projections suggest a 69% probability of no rate cut.
Analysts suggest that the strong dollar makes gold less attractive to investors holding other currencies, while fading hopes for interest rate cuts reduce gold’s appeal as a hedge against inflation.
In other precious metals trading, silver also experienced a decrease, falling by 0.3% to $49.86 per ounce. Platinum, however, bucked the trend, rising by 1.1% to $1527.25 per ounce. Palladium also saw gains, increasing by 0.7% to $1384.18 per ounce.
The performance of these metals reflects a complex interplay of factors, including economic data, currency movements, and investor sentiment regarding future monetary policy. DZWatch will continue to monitor these developments and provide updates as they unfold.
