Gold prices decline in the face of the rise of the dollar and anticipation of US jobs data

Gold fell slightly today, as a result of the rise in the dollar, while investors awaited the minutes of the latest monetary policy meeting of the Federal Reserve (the US central bank) and the US jobs report, which may shed more light on the path of interest rates.

The price of gold in spot transactions fell 0.2 percent to $4,059 per ounce, at 02:01 GMT. US gold futures for December delivery also fell 0.1 percent to $4,061.60 an ounce.

Tim Waterer, chief market analyst at KCM Trade, said: “The momentum for gold was affected to some extent by the rise of the dollar and doubts about when the Federal Reserve will next cut interest rates.”

He added, “However, a wave of risk aversion in the market kept gold in the interest of investors as a safe haven, which limited the decline.”

The dollar index rose 0.1 percent against major currencies. The rise in the dollar increases the cost of gold for holders of other currencies.

Global stock markets fell sharply this week, with the S&P 500 index recording a four-day losing streak due to concerns about artificial intelligence stock valuations.

Investors are now awaiting the minutes of the latest Federal Reserve meeting, scheduled to be released later today, and the non-farm payrolls report for September, which will be released tomorrow, Thursday, after being postponed due to the US government shutdown.

Economists polled by Reuters expect the report to show that employers added 50,000 jobs during the month.

Yesterday, Tuesday, data showed that the number of Americans receiving unemployment benefits reached its highest level in two months in mid-October.

The US Central Bank had cut interest rates by 25 basis points, but its Chairman, Jerome Powell, expressed caution about any further interest rate cut this year, due to reasons including a lack of data.

Non-yielding gold tends to perform well in a low interest rate environment and during periods of economic uncertainty.

As for other precious metals, the price of silver stabilized in spot transactions at $50.70 per ounce, platinum fell 0.5 percent to $1,527.63, and palladium fell 0.3 percent to $1,396.68.