Gold prices fell on the European market on Thursday, extending for a fifth consecutive day, the lowest level in a week, as USD recovered against a basket of currencies ahead of the Fed’s monetary policy meeting.
Gold prices fell by more than 0.2% as of 09:28 GMT to trade at $ 1,223.42 an ounce from the opening level of $ 1,226.33 and recorded a high of $ 1,227.06 and a low of $ 1,221.40 a week.
Gold prices lost 0.4% on Wednesday, their fourth daily loss in a row, as demand for the metal fell as a safe haven as US stocks rallied on Wall Street.
The dollar index rose 0.1% on Thursday, reversing from a two-week low of 95.47 points recorded earlier in the day, reversing the recovery of the US dollar against a basket of major and minor currencies, which put pressure on the price of gold and other metals denominated in dollars American.
The recovery of US currency levels as investors shift to the Federal Reserve’s monetary policy meeting, which began on Wednesday unusually because of midterm congressional elections on Tuesday, is due to be released today at 19:00 GMT.
Most expectations are that US interest rates will remain unchanged at 2.25% and that the monetary policy statement will provide strong evidence of the possibility of raising rates at the December meeting for the fourth time this year.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed fund fell yesterday by 1.47 metric tons, its fourth consecutive daily decline, bringing the total to 755.23 metric tons, the lowest level of holdings in November.