Gold prices ends last week with notable decline
Date
11/10/2024 6:55:18 AM
(MENAFN) Gold prices ended last week with a notable decline, experiencing their largest weekly drop in over five months. The downturn was driven by the rise of the U.S. dollar and uncertainty about the implications of Donald Trump’s potential return to the presidency, particularly regarding interest rate policies.
Spot gold decreased by 0.8 percent, falling to $2,684.03 per ounce, and ended the week down by 1.8 percent. U.S. gold futures also saw a 0.4 percent drop, closing at $2,694.80. Meanwhile, the dollar index increased by 0.6 percent, marking a weekly gain.
The Federal Reserve’s 25-basis-point interest rate cut on Thursday was accompanied by cautious guidance regarding future rate reductions. Trump’s election raised speculation that the Federal Reserve might slow its pace of rate cuts, especially with concerns about the impact of his tariff policies.
Jerome Powell, Chair of the Federal Reserve, assured that the election results would have no immediate effect on monetary policy. While gold is typically viewed as a hedge against inflation, higher interest rates reduce its attractiveness due to its lack of yield.
Han Tan, senior market analyst at Xinity Group, commented that if the market anticipates further rate cuts by year-end, it could help maintain spot gold prices above $2,700.
Other precious metals also saw declines: silver dropped 2.4 percent to $31.22 an ounce; platinum fell 2.9 percent to $968.04; and palladium decreased by 3.5 percent, settling at $988.80, all showing losses for the week.
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