Gold loses its luster as the dollar rises and interest rate cut expectations decline

Gold prices fell today, affected by the rise in the dollar, as investors reduced their expectations that the Federal Reserve (the US central bank) would reduce interest rates following the hawkish statements made by Chairman Jerome Powell last week, while the precious metal was negatively affected by the decline in trade tension between America and China.

Gold in spot transactions fell 0.8 percent to $3,968.76 per ounce by 00:16 GMT. US gold futures for December delivery fell 0.5 percent to $3,978.30 an ounce.

The dollar index stabilized near its three-month high reached last week, making dollar-denominated gold more expensive for holders of other currencies.

On Wednesday, the US Central Bank reduced interest rates by a quarter of a percentage point for the second time this year, bringing the benchmark overnight interest rate to a target range of 3.75 to 4.00 percent.

The CME Group’s Fed Watch tool indicates that markets now expect 71 percent to cut interest rates in December, up from more than 90 percent before Powell’s statements.

US President Donald Trump said on Thursday that he agreed with Chinese President Xi Jinping to reduce customs duties imposed on China in exchange for Beijing taking strict measures against the illegal fentanyl trade, resuming purchases of US soybeans, and ensuring the continuation of rare earth exports. !

As for other precious metals, silver in spot transactions fell 0.5 percent to $48.41 per ounce, platinum fell 0.1 percent to $1,566.40, and palladium fell 0.6 percent to $1,424.88.