Gold Slides, Down 2% for the Week on Dollar Surge and Fed`s Hawkish Stance

Published on Nov 10, 2023 13:39

Gold futures slipped below $1,960 per ounce, and is for second consecutive weekly decline, influenced by a stronger dollar and higher Treasury yields amid hawkish signals from the US Federal Reserve. International bullion futures are about to end the week with losses of nearly 2%. Fed Chair Jerome Powell expressed concerns about inflation, and Governor Michelle Bowman hinted at potential rate hikes due to economic strength. Minneapolis Fed President Neel Kashkari cautioned against prematurely declaring victory over inflation. Gold also weakened as reduced concerns over a broader Middle East conflict diminished safe-haven demand. Gold`s allure waned as China experienced deflationary trends in October, with a 0.1% drop in the Consumer Price Index and a 2.6% decline in the Producer Price Index, signalling reduced inflation concerns. This impacted gold`s traditional role as an inflation hedge. MCX gold December futures slipped below Rs 60000 levels yesterday and was last seen trading down Rs 142 per 10 grams.