Gold prices fell Thursday, October 27, as the dollar rose, while investors awaited economic data amid expectations that the US Federal Reserve may slow the pace of interest rate hikes following November.
And gold fell in spot transactions 0.1% to $ 1662.79 an ounce by 09:52 GMT, and US gold futures fell 0.1% to $ 1666.70 an ounce.
“It looks as if gold is going through a fundamental shift in sentiment on the back of economic uncertainty, and here too what the ECB will say is going to have more impact than it does,” said Rona O’Connell, analyst at Stone X.
The European Central Bank has already raised interest rates at the fastest rate ever, and is expected to raise rates once more on Thursday to combat the rise in inflation.
However, O’Connell said, “There is already an expectation that at the November meeting the Fed will raise interest rates by 75 basis points, and is likely to do the same in December.” “This talk is premature,” she added.
The majority of experts in a Archyde.com poll from Oct. 17 to Oct. 2 forecast another 50 basis point increase in December. Increasing interest rates in the United States increases the opportunity cost of holders of gold, which does not generate a fixed return.
The dollar index rose 0.3%, making gold less attractive to overseas buyers.
As for other precious metals, silver fell 1.5 percent in spot transactions to $19.32 an ounce, and platinum fell 0.8 percent to $943.43, while palladium was little changed and settled at $162.41.
