The dollar index continues to strengthen, making gold more expensive for investors trading other currencies. However, the greenback is heading toward closing out its worst month in a year.
Gold falls this Thursday while the dollar is regaining strength, anticipating a crucial report from inflation in the United States. Despite this downward trend, the gold metal is heading for its second consecutive month of gains, driven by growing expectation of an interest rate cut by the Federal Reserve.
In today’s market, Spot gold is declining 0.2%, standing at $2,041.19 per ounce, with a cumulative increase of 2.8% during the month, after having registered an impressive increase of 7.3% in October. Meanwhile, US gold futures for December delivery show a decrease of 0.3%trading at $2,041.70.
The dollar index continues to get stronger, which makes gold more expensive for those investors who operate with other currencies. However, the greenback is heading toward closing out its worst month in a year.
Gold vs. dollar: the data analyzed by the market
CMC Markets’ Michael Hewson is pointing out: “The downside risk for gold now lies in the idea that the decreases observed in the rate of inflation could begin to slow, thus diminishing expectations of rate cuts as inflation strengthens.”
Market eyes are focused on data on personal consumption spending in the United States, the Fed’s preferred inflation indicator, which is expected at 1330 GMT. Likewise, on the horizon is the speech of the president of the Fed, Jerome Powellscheduled for Friday.
During this week, Several US central bank officials are hinting at the possibility of a rate cut in the coming months, supporting their expectations on a probable slowdown in growth and a continuation of the decline in inflation. These comments are causing 10-year Treasury yields to drop to 2.5-month lows.
As for other precious metals, silver is experiencing a 0.1% decline, standing at $24.98 per ounce, although it is heading towards its second consecutive month of rise. Meanwhile, the platinum is down 0.6% at $926.76, and palladium is suffering a 2% loss at $1,006.73, heading for its second consecutive monthly decline.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
