EconomyGold falls to lows in more than a week,...

Gold falls to lows in more than a week, Fed monetary policy clouds the outlook

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Gold prices fell for a fourth straight session on Monday on the strength of the dollar, as monetary policy from the US Federal Reserve clouded the outlook for non-yielding bullion.

Spot gold was down 0.6% at $1,739.31 an ounce by 0931 GMT, after hitting its lowest level since November 10 at $1,738.35. Gold futures in the United States were down 0.7% at $1,742.

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UBS analyst Giovanni Staunovo noted that one of the main factors influencing the gold price is US real interest rates, and that the metal is taking note of the looming nominal rate hike, as well as the strength of the dollar.

Bullion fell 1.2% last week, its worst week since the week ending Oct. 14.

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The dollar rose 0.8%, making the bullion, which is quoted on the greenback, more expensive for foreign buyers.

Investors will closely watch the Federal Reserve’s November meeting minutes, due to be released on Wednesday, and market participants expect a half-point interest rate hike in December following recent comments from Fed officials. the Federal Reserve.

Rising interest rates make gold, traditionally a hedge against inflation, less attractive as it increases the opportunity cost of holding bullion, which does not earn interest.

Investors are also watching the economic consequences of the new COVID-19 restrictions in China, the main consumer of bullion.

Among other precious metals, spot silver was down 1.3% at $20.63 an ounce, platinum was down 1.3% at $964 and palladium was down 2.5% at $1,888. 12.

Source: Elcomercio

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John
John
I am John Casanova. I am an author at 24 news recorder and mostly cover economy news. I have a great interest in the stock market and have been writing about it for many years. I am also interested in real estate and have written several articles on the subject. I am a very experienced investor and have a lot of knowledge to share with others.

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