World Gold Prices Plunge Toward $4,000 an Ounce
Spot gold fell $107 to $4,031 an ounce on November 10, after touching $4,012 during the session. Higher than expected US inflation lifted the dollar and Treasury yields, shifting expectations for the Federal Reserve’s December rate increase.
At the close on November 10, international spot gold was down $107 at $4,031 an ounce. It fell as low as $4,012 during the session, at one point losing nearly $130 an ounce. Gold came under pressure as the dollar and US Treasury yields rose following higher than expected US inflation data.
World gold prices fell during the November 10 trading session.（VietVance）
Data from the US Bureau of Labor Statistics showed that the consumer price index rose 0.4% in October from the previous month. That was slower than September’s increase but above economists’ forecast of 0.3%. CME’s FedWatch tool showed that the market put the probability of a 25 basis point Federal Reserve rate increase in December at nearly 100%; the probability of a 50 basis point increase rose to 10% from 0%. Federal Reserve Governor Christopher Waller said on November 10 that he supported a larger rate increase following the report.
Marex analyst Edward Meir said a stronger dollar makes gold more expensive for buyers using other currencies, while higher US Treasury yields increase the opportunity cost of holding it. He viewed these factors as short term pressure on gold prices.
Standard Chartered noted that gold remained above the $4,000 an ounce threshold. It said crude oil, inflation risks and stock market movements would continue to affect gold prices through the end of the year, with the Federal Reserve’s policy meeting a key focus. In the physical gold market, the Monetary Authority of Singapore said it would launch a gold storage service for foreign central banks and reduce taxes for businesses in the gold market.
Source: VietVance
