Gold Weakens Again, Is This the Start of a Downtrend?
Gold prices came under pressure again at the start of the week, falling for the third consecutive session as a strengthening US dollar weighed on its movement. The dollar is now holding near a six-month high, making gold—priced in dollars—more expensive for foreign investors. This pressure has kept spot gold trading around $4,051 per ounce, while US futures have actually gained slightly.
The market is now weighing the chances of a Fed interest rate cut in December. The probability of a rate cut, which had previously jumped to 74%, has fallen back to 69% following mixed comments from Fed officials. Dovish remarks from New York Fed President John Williams boosted expectations of a rate cut, but several other Fed officials remain cautious, believing that cutting too quickly could pose risks to the economy.
This situation has caused gold to lose short-term fundamental support. As a non-yielding asset, gold typically benefits from falling interest rates. However, with unclear policy signals and a lack of major geopolitical tensions, analysts believe gold may move sideways or even weaken in the next 3-5 weeks.
Meanwhile, other metal markets are moving more stable. Silver prices are tending to Gold futures were flat at around $49.9 per ounce, while platinum and palladium each rose more than 1%. On the geopolitical front, the US and Ukraine resumed discussions on a peace plan with Russia after the previous proposal was deemed too favorable to Moscow—a sentiment that also impacted the commodity market in general. (asd)
Source: Newsmaker.id
