Price Of Gold Falls To Near Two-week Low As Dollar Strengthens

Al-Rai Daily reported that gold prices hit a nearly two-week low on Tuesday as the US dollar gained strength, while traders awaited Federal Reserve officials' insights into potential interest rate changes.

As of 1050 GMT, spot gold prices dropped 0.5 percent to $1,967.09 per ounce. This marks the lowest level recorded since October 25. Gold futures followed suit, falling 0.8 percent to reach $1,973.50.

Meanwhile, the dollar index rose by 0.4 percent, making gold more expensive for foreigners. Carlo Alberto de Casa, a market analyst at Kinesis Money, noted that the gold market is in a holding pattern, awaiting more cautious signals from the US Federal Reserve before any potential upward movement. He also emphasized that prices are currently consolidating after recently entering the overbought zone.

The rise in gold prices in October was largely driven by increased demand due to Middle East uncertainties, which traditionally lead to a rise in safe-haven assets.

Several Federal Reserve officials will address the public this week, including Chairman Jerome Powell on Wednesday and Thursday. In December, according to CME Fed Watch, market investors expect the Federal Reserve to maintain current interest rates, with an approximately 80 percent chance of a reduction in June next year.

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