Gold prices hit a nearly two-week low on Tuesday as the US dollar gained strength, while traders eagerly awaited insights into potential interest rate changes from various Federal Reserve officials set to speak this week, reported Al-Rai Daily.
In the world of spot gold transactions, prices saw a 0.5 percent drop, settling at $1,967.09 per ounce as of 1050 GMT. This marks the lowest level recorded since October 25. Gold futures followed suit, falling 0.8 percent to reach $1,973.50.
The dollar index concurrently surged by 0.4 percent, making gold a pricier option for foreign buyers. Carlo Alberto de Casa, a market analyst at Kinesis Money, noted that the gold market is in a holding pattern, awaiting more cautious signals from the US Federal Reserve before any potential upward movement. He also emphasized that prices are currently consolidating after recently entering the overbought zone.
October saw gold rise by over seven percent, largely driven by increasing demand due to uncertainties in the Middle East, which traditionally leads to an uptick in safe-haven assets.
The spotlight now falls on several speeches scheduled this week by Federal Reserve officials, with particular attention on Chairman Jerome Powell, set to address the public on Wednesday and Thursday. Market investors generally believe that there is a 90 percent likelihood the Federal Reserve will maintain current interest rates in December, with an approximately 80 percent chance of a reduction expected in June next year, according to the CME Fed Watch service.
