Gold prices fell amid a weak dollar. The market again hopes that the Fed will take a Rate Hike step in the near future.
Gold prices slipped in the trading session Thursday (18/November) night.
Gold futures on the Comex in New York fell 0.2% to $1866.10, while gold futures fell 0.2% to $1863.70 an ounce.
The following XAU/USD chart also shows a 0.2% decline in gold prices at $1860.87.
The current weakening of gold prices occurs when the US Dollar is also weakening due to profit taking.
According to experts, this was due to the previous overbought increase in gold prices.
In addition, US Treasury bond yields are peaking at a three-week high.
"We saw a fairly high increase in (gold prices) before. Yields also strengthened slightly, which actually pushed down gold prices," said Michael Hewson, analyst at CMC Markets.
Tonight, the US Department of Labor releases its weekly Unemployment Claims data.
Although the decline was not as low as expected, the number of people applying for unemployment benefits last week decreased by a thousand to 268,000.
Gold awaits the certainty of the Fed's monetary policy
The hawkish comments from the Fed's Bullard also raised expectations of a Fed Rate Hike.
President of the Fed St. Louis said that the Fed should take a more hawkish direction in the next few meetings, in order to deal with the possibility of persistent inflation.
Michael Hewson commented, "For now, it's still very uncertain what the Fed's policy will be.
Given the direction of the latest economic data and comments by Fed President (St. Louis) James Bullard, gold is in a holding pattern before the next Fed meeting."
Meanwhile, Stephen Innes, Managing Partner at SPI said, "Until the Fed does signal an acceleration of tapering, then gold will maintain its current $1850 and $1875 range.
The potential appointment of Lael Brainard as the new Fed Chair is considered to lead to a super dovish (central bank attitude).
So (it) will likely push gold above $1875."
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