falling gold
Gold prices fell strongly during trading today, Friday, and gave up their morning profits and lost regarding 22 dollars of their value due to the increase in selling operations on the yellow metal and the strength of the US dollar due to the strengthening of the bets of raising US interest rates during the coming period.
During today’s trading, spot gold contracts fell by 1.34%, and recorded regarding 1643.85 dollars an ounce. Meanwhile, gold futures contracts recorded regarding 1649.75 dollars an ounce, a decrease of 1.62%.
The dollar index, which measures the performance of the US currency, rose almost during today’s trading and settled above 113.00 points, and scored regarding 113.23 points, up by regarding 0.77%, and this had a negative impact on the price of gold.
Gold prices fell strongly in light of weak demand for the yellow metal due to the apparent strength of the US dollar due to the market optimism regarding the continued tightening of US monetary policy at a strong pace during the upcoming US Federal Reserve meetings, especially following the release of very high US inflation data that exceeded market expectations.
The US dollar benefited during trading with the release of US inflation data, as statistics data in the United States revealed yesterday, Thursday, that US inflation continued to rise during last September, as the US consumer price index rose on a monthly basis by 0.4%, while it was expected to grow by 0.2%. . The previous reading of the index had recorded a growth of 0.1% in August. At the same time, the data showed that US core inflation rose on a monthly basis by 0.6%, above market expectations of a growth of 0.4%. While the previous reading recorded a growth of 0.6% last August, and this had a negative impact on gold.
In addition, gold prices were affected by the release of some economic data, as the initial reading of inflation expectations issued by the University of Michigan during the same period recorded regarding 5.1%, which is higher than the previous reading of the index last September of 4.6%, and it was revised upwards to 4.7% . This had a positive effect on the dollar as the bets of a US interest rate hike were strongly reinforced during the upcoming Fed meeting.
Also, the statements of US Federal Reserve member Lisa Cook today, Friday, that the US Federal Reserve must continue to raise interest rates, especially since inflation is very high and must work to reduce it, and that the US Federal Reserve needs to see evidence of low inflation in economic data, which had a strong positive impact. The dollar and negative gold price movements.
Among the prices of other metals, apart from gold, silver contracts fell at the beginning of trading by 4.10% and recorded regarding $18.142 an ounce, while contracts for palladium fell by 5.31% and recorded regarding $2004.78 an ounce. Likewise, platinum metal contracts fell by 0.18% and recorded regarding $894.75 an ounce.
