Gold prices fell Thursday and were at risk of settling lower for a fourth time in five sessions as the U.S. dollar gained ahead of the latest policy update from the Federal Reserve.
was down $3.80, or 0.3%, at $1,224.90 an ounce, so far logging about a 0.7% decline for the week. December silver
fell 13.9 cents, or nearly 1%, to $14.43 an ounce, and has fallen 2.2% for the week to date.
Gold futures rose on Wednesday, buoyed briefly by a weaker dollar and lower bond yields in the wake of midterm elections that left the U.S. with a divided Congress. A weaker dollar is seen as a benefit for gold, as it makes dollar-priced commodities cheaper to buyers using other currencies, and vice versa. Split power across the chambers is expected to complicate further government stimulus, including additional tax cuts.
On Thursday, however, the ICE U.S. Dollar Index
a measure of the U.S. currency against six major rivals, bounced back into the green. The gauge has climbed more than 4% year to date, boosted by a tightening Federal Reserve.
The Fed concludes its latest two-day policy meeting at 2 p.m. Eastern time, after gold futures settle. The meeting isn’t expected to yield major policy changes, but an interest-rate hike is expected in December. On Thursday, market participants will be watching for the central bank’s insights about the health of the economy, its expectations for inflation and any lingering effects of a protracted trade spat between the U.S. and China.
“With the consensus pricing in a 25-basis-point December hike, the board is expected remain consistent with its ‘gradual’ hiking communication,” said Dean Popplewell, vice president of market analysis at Oanda. “The U.S.’s strong growth outlook and tightening labor market will allow for hikes to continue in 2019, but it’s the pace of hikes that the markets want to see – has [the Fed’s] views changed with the recent equity volatility?”
In other metals trade, January platinum
fell 0.4% to $875.50 an ounce, while December palladium
fell 0.1% to $1,119.20 an ounce. December copper
declined by 0.7% at $2.734 a pound.
Among exchange-traded funds, SPDR Gold Shares
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