Gold Plunges to One-Month Low Ahead of Key US Data

12 Nov 2024 , 10:46 AM

As investors awaited U.S. economic data and remarks from Federal Reserve officials for additional clarity on the interest rate trajectory, gold remained close to a one-month low on Tuesday.

The October Consumer Price Index data on Wednesday, the Producer Price Index and weekly unemployment claims on Thursday, and retail sales and industrial production on Friday will be the main market focus points. Speakers this week include Chair Jerome Powell and a host of other U.S. central bank officials.

After plunging to its lowest level since October 10 on Monday, spot gold was barely moving at $2,622.89 per ounce. At $2,629.10, U.S. gold futures increased by 0.4%.

The US dollar remained close to its four-month peak. Other currency holders find bullion less appealing when the dollar is stronger.

Since Donald Trump was elected president of the United States, there has been pressure on the price of gold. The likelihood of increased inflation and the necessity of keeping rates higher for longer have increased since Trump’s victory.

On Thursday, the Fed cut the benchmark rate by 25 basis points. The likelihood of another 25-bp cut in December is currently 66%, according to traders.

Powell stated last week that there would be no “near-term” effect on U.S. monetary policy from the election results.

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