Gold prices climb nearly 1% as dollar rally eases
At least seven Fed officials due to speak this week
Expect less-dovish rhetoric from US policymakers, analyst says
Solid US retail sales in October underscore economy's resilience
Adds comment and updates prices
By Ashitha Shivaprasad
Nov 18 (Reuters) -Gold prices rose nearly 1% on Monday after last week's sharp decline, as a rally in the dollar paused, while market players awaited comments from Federal Reserve officials for more clues on the U.S. interest rate path.
Spot gold XAU= firmed 0.9% to $2,584.80 per ounce by 0718 GMT, after falling to its worst week in more than three years on Friday.
U.S. gold futures GCv1 were up 0.8% to $2,589.90.
The dollar was flat after rising 1.6% last week. A weaker dollar makes bullion less expensive for buyers holding other currencies. USD/
"Gold prices are due for a slight recovery following recent bout of hefty sell-offs and we may expect some drift higher with some rollover in the dollar," said IG market strategist Yeap Jun Rong.
"We can expect less-dovish rhetoric from U.S. policymakers in December, as the Fed sets the stage for a potential rate hold in January. This has not been fully priced in by markets yet, so any need for recalibration may still pose an obstacle for gold."
At least seven U.S. central bank officials are due to speak this week. Strong U.S. economic and inflation data continue to reshape the debate among Fed policymakers over the pace and extent of rate cuts as investors last week further downgraded their expectations for a rate reduction in December. FEDWATCH
Data on Friday showed that U.S. retail sales increased slightly more than expected in October, highlighting the economy's resilience.
Higher interest rates reduce the appeal of holding non-yielding bullion.
"We are now bearish towards gold, and expect prices to range between $2,200 and $2,600 over fourth quarter to first quarter of 2025," BMI analysts said in a note.
Spot silver XAG= rose 1.4% to $30.64 per ounce, platinum XPT= was up 1.5% at $949.48 and palladium XPD= climbed 1.3% to $963.57.
Spot gold price in USD per oz https://reut.rs/4fV3lLj
Reporting by Ashitha Shivaprasad in Bengaluru; Additional reporting by Daksh Grover; Editing by Subhranshu Sahu and Sherry Jacob-Phillips
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
