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Gold prices decline from record high as dollar strengthens
(MENAFN) Gold prices declined on Thursday, pulling back from the record highs reached earlier in the week, as the dollar strengthened ahead of the release of US jobs data and an anticipated speech by the Federal Reserve chairman. This speech is expected to offer more insights into future interest rate policies, according to a report from a UK news agency.
Spot gold dropped by 0.5 percent, trading at USD2,500.65 per ounce by 02:43 GMT, down from Tuesday's peak of USD2,531.60. Similarly, U.S. gold futures saw a decrease of 0.4 percent, settling at USD2,537.10.
The market has experienced minor fluctuations between gains and losses recently, indicating a period of consolidation, observed Ilya Spivak, a global macroeconomist at TestLife. He pointed out that the minutes from the Federal Reserve's July meeting suggest the Fed is leaning towards cutting rates to avoid over-tightening its monetary policy, which could unnecessarily harm the economy.
Following its lowest level since late December on Wednesday, the dollar index rose by 0.2 percent after the release of the Fed’s July meeting minutes, which revealed a strong inclination among officials to lower interest rates next month. A lower interest rate environment generally enhances the attractiveness of non-yielding assets like gold. Investors are now focused on the Jackson Hole Economic Symposium, which begins on Thursday, with Federal Reserve Chairman Jerome Powell scheduled to speak on Friday, as well as the upcoming jobless claims data due at 12:30 GMT. In the broader precious metals market, silver declined by 0.9 percent to USD29.37 per ounce, platinum fell by 0.41 percent to USD959.76, and palladium decreased by 0.3 percent to USD948.55.
Spot gold dropped by 0.5 percent, trading at USD2,500.65 per ounce by 02:43 GMT, down from Tuesday's peak of USD2,531.60. Similarly, U.S. gold futures saw a decrease of 0.4 percent, settling at USD2,537.10.
The market has experienced minor fluctuations between gains and losses recently, indicating a period of consolidation, observed Ilya Spivak, a global macroeconomist at TestLife. He pointed out that the minutes from the Federal Reserve's July meeting suggest the Fed is leaning towards cutting rates to avoid over-tightening its monetary policy, which could unnecessarily harm the economy.
Following its lowest level since late December on Wednesday, the dollar index rose by 0.2 percent after the release of the Fed’s July meeting minutes, which revealed a strong inclination among officials to lower interest rates next month. A lower interest rate environment generally enhances the attractiveness of non-yielding assets like gold. Investors are now focused on the Jackson Hole Economic Symposium, which begins on Thursday, with Federal Reserve Chairman Jerome Powell scheduled to speak on Friday, as well as the upcoming jobless claims data due at 12:30 GMT. In the broader precious metals market, silver declined by 0.9 percent to USD29.37 per ounce, platinum fell by 0.41 percent to USD959.76, and palladium decreased by 0.3 percent to USD948.55.
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