Gold prices are falling amid anticipation of central banks’ moves to counter inflation

  • 18 November, 2021
  • 5:10 pm EET

Gold prices fell in trading today, Thursday; He countered the uncertainty about the pace at which central banks would need to raise interest rates to stem the rise in inflation in conjunction with the dollar’s weakness.

Yesterday, Wednesday, gold prices closed with a rise of more than 16 dollars, with the decline of the US currency and Treasury yields.


Gold Prices Today

By 08:52 AM GMT (11:52 AM Mecca Al-Mukarramah), the price of gold futures – for December delivery – decreased by 0.16%, to record the level of $ 1867.20 an ounce.

The price of spot delivery for the yellow metal also decreased, by 0.11%, to record $1865.45 an ounce.

At the same time, the price of silver futures contracts – for December delivery – decreased by 0.19%, to $25.18 an ounce.

While the spot platinum price increased by 0.52%, to record $ 1067.24 an ounce, while the spot palladium price declined by 0.82%, to reach $ 2174.99 an ounce.


Bullion Prices

Bullion prices surged to their highest level in more than 5 months, on Tuesday, amid growing concerns about rising inflation.

The data showed that British inflation hit a 10-year high last month, and that US consumer prices accelerated in October.

Rising inflation has boosted bets for an interest rate hike by the Bank of England in December and the US Federal Reserve next year.


Gold Market

“The gold market is ready for the Fed to do something now, but the big question is will they accelerate the gradual plans?” said Stephen Innes, managing partner at SBI Asset Matchmaking.

He added, “Until the Fed actually indicates an accelerated decline, gold should maintain its current ranges of $1,850 and $1,875.”

WASHINGTON (Reuters) – U.S. President Joe Biden is likely to decide whether to keep incumbent Federal Reserve Chairman Jerome Powell for a second term or promote Federal Reserve Governor Lyle Brainard to the position before Thanksgiving, a White House spokesman said on Wednesday.

Gold is often seen as a hedge against inflation, but higher interest rates raise the opportunity cost of the non-interest bearing metal.

Lending gold was the weakness of the dollar; This reduces the cost of bullion for buyers holding other currencies.


Anti-Inflation Moves

Chicago Federal Reserve Chairman Charles Evans reiterated Wednesday that it will take until the middle of next year to complete the Fed’s liquidation of its bond-buying program to see if high inflation abates as expected.

ECB Governing Council member Isabel Schnabel said the ECB should be ready to rein in inflation in the Eurozone if it proves to be more permanent than expected.

Raising interest rates is seen as reducing the attractiveness of bullion; Higher interest rates increase the opportunity cost of the non-interest bearing metal.




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