Gold prices fell during these moments of trading, today, Monday, after achieving slight gains last week, as investors evaluated the decision of US Federal Reserve officials regarding interest rates, in addition to revealing the possibility of additional increases in interest rates in the coming period, which limited the gains. yellow metal.
Gold and dollar now
Gold futures fell by 0.24% to $1,940 an ounce.
While spot gold contracts fell by 0.2% to $1,921 per ounce.
While the dollar index rose slightly to 105.277 points, or 0.02%.
Gold at settlement on Friday
Gold prices rose at the settlement of trading, on Friday, as markets evaluated the path of monetary policy expected by the Federal Reserve during the coming period.
Upon settlement, gold futures contracts for December delivery rose by 0.3%, or the equivalent of $6, to reach $1,945.6 per ounce, reducing the losses achieved during the previous session, and ending the week’s trading without change.
Demand for gold remains weak
The decline in holdings of global gold exchange-traded funds (ETF) shows that investment demand in gold remains weak, said Praveen Singh, assistant vice president at Indian brokerage Sharekhan, adding that higher interest will put pressure on the precious metal.
The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell on Friday to their lowest level since January 2020.
Federal Reserve officials on Friday warned against raising interest rates even after voting to keep the benchmark interest rate steady last week, as three policymakers said they were still unsure whether the inflation battle was over.
Susan Collins, President of the Federal Reserve Bank of Boston, said: I expect interest rates to remain higher, and for a longer period, than previously expected, and resorting to further tightening is not excluded. Central Bank Governor Michelle Bowman also indicated that there might be a need to approve a more than one rate increase, which supports her position as one of the most hawkish members of the Federal Open Market Committee.
Goldman Sachs (NYSE:GS) expects the Federal Reserve to begin a cycle of lowering interest rates during the fourth quarter of next year, instead of previous expectations of starting monetary easing during the second quarter of the same year.
High interest rates discourage purchases of non-interest-bearing bullion, which is priced in dollars.
The dollar was hovering around the highest level in more than six months, while benchmark 10-year Treasury yields were near their peak in 16 years.
US business activity showed little change in September, a survey published on Friday showed, while a separate survey showed that the euro zone economy is likely to contract this quarter and will not return to growth any time soon.
The Bank of Japan maintained ultra-low interest rates on Friday and pledged to bring inflation sustainably to its 2% target.
Investors are awaiting the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred measure of inflation, which will be released on September 29.
Meanwhile, US lawmakers are trying to negotiate a spending bill before September 30, the deadline to avoid a potential government shutdown. As the warring parties among the Republicans in the US Congress showed no sign of reaching an agreement to approve a temporary funding bill, with only one week remaining until the federal government runs out of funds, which will lead to its closure.
other metals
Spot silver fell 0.3% to $23.47 an ounce, platinum fell 0.5% to $921.35, and palladium fell 0.2% to $1,246.22.
