(MENAFN) In recent trading sessions, gold futures prices witnessed a decline, reversing the gains accumulated earlier in the week. This reversal coincided with a notable strengthening of the US dollar against currencies belonging to the Group of Ten nations, with the exception of the yen.
Specifically, gold futures contracts for April delivery saw a decrease of 1.15 percent, equivalent to a USD24.7 drop, settling at USD2,160 per ounce upon closure. Consequently, the precious metal concluded the week's trading with minimal changes in its overall value.
The surge in the dollar index, which rose by 1 percent throughout the trading period, marked a continuation of its upward trajectory for the second consecutive week. This trend underscores the dollar's resilience and its dominance in currency markets amid ongoing economic dynamics.
The Federal Reserve's decision to maintain interest rates within a range of 5.25 percent to 5.5 percent and its adherence to expectations of a gradual reduction in borrowing costs by the year's end influenced market sentiments. However, the central bank emphasized its cautious approach, highlighting the need for sustained evidence of declining inflation towards its target of 2 percent before initiating any significant policy adjustments.
Overall, the interplay between gold futures prices and the dollar's performance reflects the complex dynamics shaping global financial markets, with investors closely monitoring central bank policies and economic indicators for signals of future trends.
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