Mumbai, 28 Oct (Commoditiescontrol): Gold prices fell on Monday as the U.S. dollar remained strong, with investors awaiting key U.S. economic data for clues on the Federal Reserve's interest rate outlook.
Spot gold dipped 0.5% to $2,733.01 per ounce, while U.S. gold futures slipped 0.3% to $2,745.5.
The dollar index gained 0.2%, poised for its best monthly performance since April 2022, which has dampened demand for gold as a stronger dollar makes it less attractive for foreign buyers. Analysts noted that the dollar’s continued strength following Japan's recent election results has also reduced gold's appeal.
Despite the current dip, gold remains positioned to potentially rise towards $2,800, though it must first weather this week’s U.S. economic data, which could influence Federal Reserve policy. Key reports on employment, job openings, and core Personal Consumption Expenditures (PCE) data are expected, all essential for assessing inflation and labor market strength.
Market projections now show a 95% likelihood of a quarter-point rate cut by the Fed in November, according to CME’s FedWatch Tool. Lower rates generally boost the appeal of non-yielding assets like gold.
Gold hit a record high of $2,758.37 last Wednesday, fueled by safe-haven buying amid Middle Eastern geopolitical tensions. Israeli Prime Minister Benjamin Netanyahu reported significant airstrikes on Iranian defenses, although Iranian leaders downplayed the impact.
Elsewhere, spot silver fell 0.9% to $33.39 per ounce, platinum edged down 0.1% to $1,022.20, and palladium slipped 0.3% to $1,189.27 after reaching a 10-month high last session. The U.S. presidential election, set for November 5, adds to market uncertainties, with polls showing a close race between Donald Trump and Kamala Harris.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
