Gold prices dipped below US$4,000 per ounce as a stronger U.S. dollar and reduced expectations of further Fed rate cuts dampened demand. Analysts say easing U.S.-China tensions and upcoming economic data will determine the metal’s next direction.
Global gold prices fell below the US$4,000 per troy ounce threshold as the U.S. dollar held stronger and projections for another Federal Reserve rate reduction decreased. Futures gold traded at about US $3,979
The dollar has hovered near a three-month high, making dollar-priced gold less appealing to foreign purchasers. Simultaneously, the Fed’s recent rate cut
Furthermore, recent alterations by China to tax exemptions for some gold dealers may slow down consumption in the biggest jewellery market in the world. Gold’s high close at US $4,381 on 20 October signaled one of its most powerful stretches, notwithstanding the pull-back. Over the years, this year, the metal is still up almost 50%. Market observers are looking forward to upcoming U.S. economic statistics, notably the ADP Research Institute’s private-payrolls report and the Institute for Supply Management.
For hints on the next decision by the Federal Reserve, look at the Institute for Supply Management
