The brake on the increase in gold prices was pulled
reported by Mehr News The price of gold has decreased on Monday after reaching the highest value in the last 3 weeks. Investors are waiting for American economic data to estimate the rate reduction process of the central bank of this country.
According to Reuters, the price of gold per ounce decreased by 0.78% to $2,695 and 6 cents today. The price of gold futures in New York’s COMEX market has reached $2,721 and 70 cents with a decrease of 0.57%.
Gold futures have their best week since the corona have experienced and analysts believe that this positive performance will continue due to fewer working days this week following the American Thanksgiving holiday.
Traders are 51 percent likely to cut interest rates by 25 percentage points at the December meeting. This probability was equal to 62% last week.
A higher interest rate increases the cost of holding gold as a non profitable investment and lowers the desire to buy it. .
Some policy makers of the US Federal Reserve announced last week, referring to the inflation rate, that a more cautious approach should be taken, but others emphasize the necessity of continuing the interest rate reduction process.
Investors are awaiting details of the Federal Open Market Committee meeting in November, gross domestic product data and producer price index data due this week.
In addition, the dollar index has decreased by 0.7% and has made buying gold cheaper for holders of other world currencies. The yield on ten-year US Treasury bonds has also decreased.
Among other precious metals, silver fell 1.43 percent to $31.32 and platinum was down 0.92 percent to $957.41.
