Amid indications of a reduction in trade hostilities between the United States and China, as well as speculators taking advantage of bullion’s recent record rally to profit while they awaited U.S. inflation data later this week, gold prices continued to decline on Wednesday.
Spot gold was trading at $4,109.19 an ounce, down 0.4%. Tuesday saw the worst decline in the price of gold since August 2020, with a drop of about 5%. December delivery U.S. gold futures increased 0.4% to $4,124.10 an ounce.
Gold prices have increased by around 56% this year, hitting an all-time high of $4,381.21 on Monday. These gains have been supported by central bank purchases, rate-cut speculations, and geopolitical and economic uncertainty.
Investors are now awaiting the release of the September U.S. consumer price index report on Friday for additional insights into the Federal Reserve’s interest rate-cut trajectory. Because of the U.S. government shutdown, the report has been postponed.
A Reuters poll of economists indicates that the Fed will reduce its key interest rate by 25 basis points next week and again in December, although they remain significantly divided on the expected rates by the end of next year.
In other markets, spot silver rose by 0.1%, reaching $48.82 per ounce; platinum decreased by 1.5% to $1,528.15, while palladium increased by 0.7% to $1,418.09.
