Gold Falls About 4.5% for the Week as US Dollar Extends Gains

International gold prices rebounded slightly on November 13 but fell about 4.5% for the week, their steepest weekly decline since early June. According to Kitco trading data, spot gold in New York closed at $3,885.4 per ounce, up $7, or 0.18%, from the previous session. COMEX gold futures for December delivery closed virtually unchanged at $3,886.3 per ounce.

International gold prices this week, in US dollars per ounce.（VietVance）

The US Labor Department reported that the producer price index (PPI) rose 0.3% month on month in October, below the 0.4% forecast by economists in a Reuters survey, easing concerns about a large Federal Reserve rate increase. However, September’s monthly PPI increase was revised up to 1.4%. CME Group’s FedWatch tool showed that the interest rate futures market still put the probability of a Fed rate increase in December at 100%, but the probability of a 0.5 percentage point increase fell to 5% from 15% in the previous session.

Previously released US consumer price index data for October came in above expectations. Gold fell 2.6% on November 10 and a further 2.8% on November 12. A stronger US dollar and rising US Treasury yields also continued to weigh on gold. The Dollar Index rose 0.23% on November 13 to close at 103.41, a 19-month high; it gained nearly 1.1% for the week, its third consecutive weekly rise. The 10-year US Treasury yield climbed to 5.143%.

SPDR Gold Trust, the world’s largest gold exchange-traded fund, bought a net 3.7 tonnes of gold on November 13, raising its holdings to 1,044.4 tonnes. It bought a net 3 tonnes for the week. Converted at Vietcombank’s USD selling rate, spot gold’s closing price for the week was equivalent to VND 121.3 million per tael, down VND 5.2 million from the previous week. The bank’s weekend USD buying and selling rates were VND 25,500 and VND 25,910, respectively, each up VND 130 from the previous week.

Source: VietVance