The Gold Prices Drop Below $2000 Due to the Stability of the US Dollar

After a period of decline in the gold market, prices of this precious metal reached levels below $2000 per ounce on Wednesday, following the stabilization of the US dollar, which had seen a decline in the past few days. This decline coincides with expectations that the US Federal Reserve will halt its monetary tightening policies, mitigating the downward pressure on gold prices.

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The most important expectations

the details

Gold prices in spot transactions recorded a 0.1% decrease, reaching $1996.79 per ounce,
after reaching its highest levels in three weeks at $2007.29 in the previous session.
Similarly, US gold futures also experienced a 0.1% decline, reaching $1998.80.

This comes in the context of the stability of the dollar against other major currencies, after it reached its lowest levels in two and a half months in the previous session.
The decline in the value of the dollar is attributed to the improved purchasing power of holders of other currencies,
making gold less costly for them.

During the recent meeting of the US Federal Reserve officials, a commitment to “caution” in adopting interest rate policies was reaffirmed, with rates only being raised in the event of inflation deterioration, according to the meeting minutes held on November 1.

The most important expectations

Market expectations widely anticipate that the US central bank will leave interest rates unchanged at the December meeting, with a chance of up to 60% of a 25 basis points interest rate cut by May.

Real estate sales in the United States hit their lowest levels in over 13 years in October, influenced by the rise in mortgage interest rates over the past two decades and the scarcity of supply in the market, prompting buyers to stay away from the market.

US Treasury bond yields for 10-year terms are near their lowest levels in two months, touching them last week.

As for other precious metals, silver rose by 0.3% in spot transactions, reaching $23.79 per ounce, while the price of platinum remained stable at $931.34, and palladium fell by 0.6% to $1072.35.

The Gold Prices Drop Below $2000 Due to the Stability of the US Dollar

The Gold Prices Drop Below $2000 Due to the Stability of the US Dollar

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