94Ha Viewpoint
Gold prices fell for the fifth straight session, dropping to their lowest level in eight weeks, pressured by a stronger dollar and rising Treasury yields.
As of 10:44 a.m., spot gold fell 0.6% to $2,559.39 an ounce, after falling to its lowest point since Sept. 19, Reuters reported. U.S. gold futures fell 0.9% to $2,564.00. Gold prices briefly breached $2,800 intraday last month.
The dollar rose to its highest point in a year, making gold more expensive for overseas buyers, while Treasury yields rose to their highest level since July.
Kyle Rodda, a financial market analyst at Capital.com, said gold is being swayed by the dollar and yields, which has caused a short-term technical decline.
“While inflation data released last night suggests the Fed may cut rates slightly next month, market expectations for next year are that inflation may rise, so the extent of rate cuts will be less.”
Data released on Wednesday (November 13) showed that U.S. consumer prices rose as expected in October, while the progress of inflation retreat has slowed in recent times.
Gold is seen as a tool to fight inflation, but higher interest rates will reduce the appeal of holding this non-yielding asset.
