Gold prices fell for the fourth consecutive session today, Monday, due to the rise of the dollar, while the monetary policy stance of the US Federal Reserve overshadowed expectations about non-yielding gold.
The spot gold price fell 0.6% to $1,739.31 an ounce by 0931 GMT, after falling earlier to its lowest level since November 10, to $1,738.35.
US gold futures fell 0.7% to $1,742.
Analyst Giovanni Staunovo of “UBS” said that one of the main drivers of the price of gold is the real interest rates in the United States, and that gold is taking signals from a future rise in nominal prices in addition to the rise in the dollar.
Gold fell 1.2% last week, the biggest weekly decline since the week ending October 14.
The dollar rose 0.8%, making gold priced in US dollars more expensive for buyers abroad.
Investors will be closely following the proceedings of the US Federal Reserve’s November meeting scheduled for Wednesday, with market participants estimating a half-point rate hike in December following recent comments by Fed officials.
Matt Simpson, an analyst at City Index, said that gold could test the support levels at $1,735 and $1,729 before knowing the facts of the Fed meeting.
As for other precious metals, the spot silver price fell 1.3% to $20.63 an ounce, platinum fell 1.3% to $964, and palladium fell 2.5% to $1888.12.