Gold Prices Decline Amid Rising Dollar and Anticipation of Central Bank Decisions
Gold prices fell today, Monday, affected by the rise of the US dollar and a decrease in trade tensions between the United States and China, as investors await the outcomes of major central bank meetings this week. Gold dropped in spot transactions by 0.8% to reach $4078.30 per ounce, while US gold futures for December delivery fell by 1.2% to $4087.80 per ounce.
This decline came as the dollar rose to its highest levels in over two weeks against the yen, making gold more expensive for holders of other currencies, which negatively affected demand. In this context, US officials indicated on Sunday that "senior economic officials from China and the United States have laid the groundwork for a trade agreement that Presidents Donald Trump and Xi Jinping may decide on later this week," clarifying that the agreement "would temporarily halt higher US tariffs on Chinese goods and China's export controls on rare earth metals."
Regarding monetary policy, attention is focused on the US Federal Reserve meeting on Wednesday, where it is widely expected that the interest rate will be cut by a quarter percentage point. Investors are also awaiting statements from Chairman Jerome Powell to determine the future path of interest rates, amid expectations of an additional cut in the upcoming December meeting. Gold is considered a non-yielding asset, making it more attractive in a low-interest-rate environment.
In the market for other precious metals, silver saw a slight decline in spot transactions by 0.3% to record $24.44 per ounce, while platinum rose by 0.5% to reach $1012.95, and palladium increased by 0.2% to record $1431.94 per ounce.
