Gold prices fell for the third session in a row during these moments of trading today, Wednesday, affected by the rise in the dollar.
Investors are looking for more clarity on interest rates from US Federal Reserve Chairman Jerome Powell's comments, after mixed messages from a group of monetary policy makers at the US central bank.
The dollar is pressuring gold with support from the Federal Reserve
The dollar index extended its gains against its rivals, making gold priced in the US currency more expensive for holders of other currencies.
“There are not many catalysts driving gold this week, with markets digesting geopolitical risks,” said Ilya Spivak, head of global macro at Tastylive.
Several Fed officials on Tuesday maintained a balanced tone on the central bank's next decision, but indicated they would focus on more economic data and the impact of rising long-term bond yields.
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said that the continuation of economic activity at this pace raises questions about the extent of tightening monetary policy, noting that he does not see much evidence of a slowdown in the economy at the present time.
Investors are now looking forward to comments from Federal Reserve Chairman Jerome Powell, who is scheduled to speak on Wednesday and Thursday.
Spivak added: We are likely to see a restatement of what Powell said about three weeks ago at the Economic Club of New York, and at the Federal Open Market Committee last week, which is that the Fed will keep interest rates at these levels. But he stressed that there will likely not be any additional increases.
Futures indicate a roughly 15% chance of interest rates rising again by January, but only a 20% chance that cuts could come as early as March, according to Investing Saudi Arabia's Fed rate tracker.
Low interest rates enhance the attractiveness of non-yielding bullion.
Gold at settlement yesterday
Gold prices fell at the settlement of trading yesterday, Tuesday, recording the lowest level in about 3 weeks.
Upon settlement, gold futures for December delivery fell by 0.75%, or $15.1, at $1,973.5 per ounce, the lowest level at the end of the session since October 18.
Gold and the dollar at 10:30 Saudi time
Gold futures fell 0.03% to $1,973 an ounce.
While spot gold contracts fell by 0.12% to $1,967 per ounce.
On the other hand, the dollar index rose by 0.2% to 105.58 points.
other metals
Silver fell in spot transactions 0.6 percent to $22.48 per ounce, while platinum fell 0.3 percent to $888.53. Palladium fell 2.5 percent to $1,029.12 per ounce, after reaching its lowest levels since October 2018 at $1,016.06 earlier in the session.
