The price of gold on Friday morning remained at its lowest level since April 2020 at around $1,670 per troy ounce. Markets continue to assess the prospects for a rate hike by the US Federal Reserve.
According to data from today’s trade, as of 9:35 a.m. Bulgarian time, the price of December gold futures on the Comex exchange in New York fell by $6.50, or by 0.39%, to $1,670.80 per troy ounce. A day earlier, the price fell to $1,668.9, the lowest level since April 2020.
On the spot market, the precious metal traded at $1,660.02 per troy ounce, Trading Economics reported.
The price of December silver futures fell 0.76% to $19.122 an ounce.
Gold fell 1.9% on Thursday as markets expect the Fed to maintain tight monetary policy based on macroeconomic statistics. The number of initial claims for unemployment benefits in the US for the week of September 10 unexpectedly fell to 213 thousand, while the forecast was for 226 thousand.
Meanwhile, data released on Tuesday showed domestic consumer price growth slowed to 8.3% year-on-year from 8.5% in July, although a slowdown to 8.1% was expected. Similar data continue to support expectations that the Fed will raise its key interest rate next week. According to the CME Group, 76% of experts forecast a 75 basis point increase, as the rate has already been raised twice over the summer. And 24% of analysts expect an acceleration of the rate of increase to 100 basis points from the current level of base interest rates in the range of 2.25-2.5% per annum.
“Investors looking for a safe haven are still turning to the US dollar rather than gold. This should continue in the short term, but if we see significant stock market volatility then gold could regain lost ground as a safe haven asset. ” – notes the manager of Guardian Gold Australia John Feeney, quoted by Bloomberg.