Wednesday, November 6, 2024

Dollar strength pushes gold to longest losing streak since November By Reuters

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© Reuters. File photo of an employee processing pure gold ingots at the Krastsvetmet Nonferrous Metals Plant in Krasnoyarsk, Siberia, Russia.

By Ashita Shivaprasad

(Reuters) – Bullion prices fell for a fifth straight session on Friday, their longest losing streak since November last year, as the allure of bullion waned as the dollar rose and interest rates rose in the United States.

By 1747 GMT, spot gold was down 0.6% at $1,748.58 an ounce, after hitting its lowest since July 28 earlier in the session. US gold futures fell 0.5% to $1,762.9.

* After recording gains in the previous four weeks, prices fell by 2.9% this week, the largest decline since the week of July 8.

* “The main element that is putting pressure on the gold market is the return of the dollar (…) Gold and the dollar are competing as safe haven assets. The increase in US interest rates suggests a stronger dollar,” said Jim Wyckoff, principal analyst at Kitco Metals, “adds more The negative side of gold.

*He was awake and headed for a weekly profit. A strong dollar makes gold less attractive to foreign buyers.

Several US central bank officials said Thursday that the Federal Reserve should continue to raise interest rates to control high inflation, even while debating how quickly and how high it should be raised.

Kinesis Money’s Robert Rowling wrote in a note: – The Fed’s upward trajectory reality check led to a sharp reversal in gold’s attempts to rise above $1800. He added that investors will look to below $1,700 as the next important support, rather than any bullish milestone.

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* In other precious metals, spot silver lost 2.2% to $19.09 an ounce, recording a decline of 8.3% this week, the worst since September 2020. And it fell 1.6% at $893.30, and lost 1.6% to $2121.23, both of which are down weekly.

(Edited in Spanish by Javier López de Lérida and Carlos Serrano)

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