Dollar Strength Sends Gold Prices Sliding

14 Oct 2024 , 08:56 AM

Gold prices fell on Monday as the US dollar rose, while market players waited for more clues on the Federal Reserve’s monetary policy course.

The dollar index rose 0.2%, making bullion less appealing for other currency holders.

Spot gold declined 0.4% to $2,646.75 per ounce, after climbing 1% the previous day. US gold futures fell 0.5% to $2,663.90.

Data released on Friday indicated that U.S. producer prices were steady in September, indicating a still-favorable inflation outlook and bolstering expectations that the Fed will lower interest rates again next month.

According to CME’s FedWatch tool, traders expect the Fed to decrease rates by 25 basis points at its November meeting, with a 13% chance of keeping rates constant.

In other news, the United States announced on Sunday that it will send troops to Israel, along with an advanced US anti-missile system, in a highly unusual deployment intended to reinforce the country’s air defences in response to Iranian missile assaults.

Spot silver edged down 1% to $31.21 per ounce. Platinum declined 0.9% to $976.20, while palladium dropped 2.1% to $1,045.87.

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