Gold heads for biggest weekly drop in 4 months ahead of US central bank meeting
Gold fell as strong economic data boosted expectations of interest rates remaining high.
Translated by Qiyas from الراي — Original source
Gold prices fell on Friday, heading for their largest weekly drop in more than four months, as rising oil prices and strong US economic data bolstered expectations that the Federal Reserve will keep interest rates at elevated levels for longer.
Spot gold fell 0.1 percent to $4,018.69 per ounce by 00:36 GMT, marking its lowest level since August 3.
The metal has dropped 3.4 percent since the start of the week, recording its largest weekly decline since June.
Oil prices rose by about 4 percent to a five-month high on Thursday amid concerns over further disruptions to energy supplies.
The rise in energy prices reinforces expectations that the US central bank will maintain higher interest rates for longer, increasing the opportunity cost of holding gold, which yields no return.
The number of Americans filing new claims for unemployment benefits fell to the lowest level in nearly 57 years last week, reflecting modest job growth recovery in October.
Market focus is now on the Federal Reserve’s policy meeting scheduled for October 27-28 and on personal consumption expenditures data due next week.
Traders price in no more than a 7 percent chance of a US rate hike next week, but expectations for a December rate increase remain at 81 percent.
In other precious metals, spot silver fell 0.1 percent to $54.46 per ounce, platinum dropped 0.4 percent to $1,563.67, and palladium declined 0.5 percent to $1,051.00. All three metals are on track to record weekly losses.
