Gold eases in anticipation of the Fed's policy decision

1 Nov 2023 , 10:10 AM

As cautious investors anticipated the U.S. Federal Reserve’s policy decision, gold prices began November down on Wednesday. Last month, concerns about the Middle East sparked a robust safe-haven rally that drove prices above $2,000.

Spot gold had declined 0.2% to $1,979.71 per ounce, while U.S. gold futures had dropped 0.3% to $1,988.70.

Spot gold saw a 7.3% increase in October after prices last week surged above $2,000 from their lowest point in seven months, $1,809.50, on October 6, the day before Hamas launched an attack on Israel.

In a cramped Gaza refugee camp, Israeli bombings on Tuesday killed at least fifty Palestinians, including a Hamas commander, while medical personnel struggled to tend to the injured.

The outcome of the Fed’s two-day monetary policy meeting, which ends later today, is the main focus of the market. On Friday, the U.S. monthly jobs report is released.

Despite rapid pay growth, U.S. labour expenses grew significantly in the third quarter, and in August, the inflation of housing prices picked up speed.

A study released on Tuesday revealed that U.S. consumer confidence fell in October for the third consecutive month.

Data indicated that the economy is starting to collapse and that inflation in the euro zone is rapidly declining.

The World Gold Council (WGC) warned on Tuesday that gold prices close to record highs could reduce demand in India during the country’s busiest festival season and result in the lowest purchase volumes in three years.

Spot silver decreased by 0.8% to $22.71 an ounce, palladium increased by 0.6% to $1,122.09, while platinum decreased by 0.5% to $929.46.

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