Gold fades: hits lows in more than 3 weeks after hawkish signals from the Fed

The price of gold falls and hits its lowest in more than three weeks this Friday, November 10, and was headed for a second consecutive weekly decline due to the cooling demand for shelter and the aggressive signals of the president of the Federal Reserve, Jerome Powell.

The gold futures They lost 1.2%, to $1,946.25 per ounce and hit their lowest level since October 17.

Prices accumulate a loss of 2.1% so far this week.

Keys to the fall of gold: Middle East, Powell and Treasury bonds

Gold has lost more than $50 since hitting $2,000 last week following escalating tensions in the Middle East..

“Investor appetite for gold has been affected by the Easing fears that tensions in the Middle East will spread to other regions and for Jerome Powell’s hawkish comments. “Prices opened on a shaky note on Friday and could venture towards $1,945 if the greenback extends its gains,” he said. Lukman Otunugafrom FXTM.

Market expectations that interest rates have peaked in the United States were hit after several authorities of the Fedincluding Powell, said the day before that They are not yet sure that rates are high enough to end the battle against inflation.

Benchmark 10-year US Treasury bond yields rose, making bullion less attractive, since it does not earn interest. Likewise, the dollar index was headed for its biggest weekly rise in more than three months, making gold more expensive for foreign buyers.

For his part, the palladium plummets 2.7% to $981.78, on track for its worst week in more than 15 months, hit by overstocks, as automakers shift to platinumwhich is cheaper, but also loses 1.8%, to $847.60 an ounce, heading for its worst week since mid-2021, and the silver falls 2.1%, to $22.43.