Gold drops to lowest level in over a week as dollar rises
Press coverage 1 newspapers covered this event: Al-Seyassah →
Gold prices fell, influenced by the rising dollar and US inflation, strengthening expectations of an interest rate hike by the Federal Reserve.
Translated by Qiyas from السياسة — Original source
Gold prices fell on Thursday to their lowest level in over two weeks, weighed down by a stronger US dollar and growing expectations of interest rate hikes following data showing US inflation accelerating more than anticipated.
Reuters reported that spot gold fell 0.2% to $3,977.99 per ounce by 05:06 GMT, after touching its lowest level since November 4.
US December gold futures also declined 0.4% to $3,983.20 per ounce.
The drop coincided with the US dollar rising to its highest level in 19 months against major currencies, increasing the cost of buying gold for holders of other currencies.
Market expectations for the Federal Reserve to raise interest rates in December were bolstered by US inflation data and comments from officials indicating their readiness to tighten monetary policy.
According to CME Group’s FedWatch tool, traders expect an interest rate hike in December, followed by another in March 2027.
Investors are awaiting US producer price index data on Friday for additional indicators on inflation and the future direction of monetary policy.
