Today, Tuesday, gold prices are witnessing volatile transactions, after its session began to decline with the rise of the US dollar, the stock returned to rise again, before retreating and settling near the level that it closed in yesterday’s session.
This comes at a time when markets are awaiting the results of the pivotal meeting of the US Federal Reserve scheduled for tomorrow, Wednesday, amid growing concerns about an ongoing bout of inflation.
Gold prices rose by about 12 dollars, at the end of trading on Monday, after a volatile session, with the decline of the US currency.
Gold Prices Today
By 09:07 AM GMT (12:07 PM GMT), the gold futures contract for December delivery rose 0.01%, to $1,795.90 an ounce.
The spot price of the yellow metal also increased by 0.08%, recording $1,794.74 an ounce.
At the same time, the price of silver futures contracts – for December delivery – decreased by 0.26% to $ 24.01 an ounce.
The spot platinum price fell 0.85% at $1059.14 an ounce, and the spot palladium fell 0.59%, to $2044.64 an ounce.
The dollar index rose by 0.1% in today’s trading, after falling 0.3% on Monday.
The Fed’s two-day policy meeting is scheduled to conclude on Wednesday.
Pressure On Gold
SBI Management managing partner Stephen Innes expects gold to remain under pressure in the tightening environment of the Federal Reserve, which is likely to announce the start of stimulus cuts at its meeting tomorrow, Wednesday.
Higher price and wage increases may challenge the Federal Reserve with an attempt to strike a balance between containing inflation and supporting a recovery in jobs lost since the pandemic.
“However, provided that the US 10-year yields continue to trade around current levels, indicating weaker growth prospects in the minds of bondholders, gold may remain supported,” Innes added.
Benchmark 10-year bond yields held above 1.5%, but have eased from multi-month highs of 1.7% last month.
Ines said that central banks are unlikely to start a rate hike campaign in light of weaker economic data, the Institute for Supply Management survey showed on Monday, which revealed a slowdown in US manufacturing activity last month.