Gold Slips Below $1,990 as Dollar Strengthens Ahead of Fed Meeting

Published on Nov 01, 2023 14:33

Gold futures slipped below $1,990 an ounce as investors adopted a cautious stance in anticipation of upcoming monetary policy meetings. The Federal Reserve is scheduled to announce its interest rate decision today, followed by the Bank of England on Thursday. Both central banks are expected to maintain their current interest rates, striking a balance between combating inflation and the looming threat of a recession. The Bank of Japan, on the other hand, retained its ultra-loose monetary policies and expanded its target band for the 10-year JGB yield. In October, gold is on track to gain nearly 8% due to increased geopolitical tensions in the Middle East, boosting demand for the precious metal as a safe-haven asset. In latest update by WGC, global gold demand in Q3 2023 exceeded the five-year average by 8%, yet fell 6% YoY to 1,147t, with central bank buying at 337t, strong but below Q3`22. Year-to-date, central banks purchased a record 800t of gold, while total jewelry consumption dipped 2% YoY to 516t due to sustained high gold prices. MCX December bullion futures tripped below Rs 61000 mark and was last seen trading down by Rs 108 per 10 grams.