Precious gold falls as dollar recovers, Fed officials back higher rates. Gold prices fell from their more than a week high on Monday when the dollar rose from. On Thursday, gold prices fell due to turbulent trading on Thursday, as the rise in the US dollar offset support for the precious metal with expectations that the Federal Reserve would curb its interest rate hikes after a policy meeting next week. .
The economy rebounded more than expected in the third quarter amid a decrease in the trade deficit and returned to growth after a contraction in the first half of the year. However, consumer spending was held back by aggressive Federal Reserve interest rate hikes. The central bank will raise its one-day benchmark interest rate by another 75 basis points with the November rate hikes, increasing the opportunity cost of holding zero-yield ingots. In addition to next week's U.S.
monetary policy meeting, investors will focus on Friday's release of U.S. personal income data for September, which will include the latest reading of an inflation measure that the Federal Reserve is following closely. Do you have any confidential news? We want to hear from you. Get this in your inbox and learn more about our products and services.
Gold prices stabilized on Friday, on track for a weekly gain, driven by the fall of the dollar, which is perceived as a downward trend in the United States. A troy ounce of gold is the same everywhere in the world and, for larger transactions, they are usually listed in the US. UU. Prices rise when inventories are low and demand is high; however, gold prices are more affected by interest rates and exchange rate fluctuations.
Gold prices remained stable on Friday, but pointed to a small weekly gain, driven by the overall fall of the dollar due to an apparent accommodative trend towards the U.S. However, despite this one-hour close, since it is traded in spot on the OTC markets, there are no official opening or closing prices. Over the past five years, the price of gold has appreciated by approximately 36%, while the total return of S%26P 500 has been 60%. Low interest rates weaken a country's currency and drive down bond yields; both are positive factors for gold prices.
The gold futures market is one of several commodity futures, in which contracts are concluded in which it is agreed to buy or sell gold at a certain price on a specific future date. The World Gold Council, the market development organization for the gold industry, recently opined that the commodity will face two key obstacles. The outlook for the price of gold will probably depend on how geopolitical tensions develop and how monetary tightening affects the world economy, among other factors. Founded in 1987, the World Gold Council (also known as WGC) is the gold industry's market development organization responsible for stimulating demand, developing innovative uses of gold, and bringing new products to market.
Of all government mints, only South Africa's Krugerrand gold coin has no nominal value and its value is based entirely on the world price of gold. Gold prices can be extremely volatile, and that means that gold is not a fully stable investment. .