Gold Fades as Dollar Takes Centre Stage; Powell in the Spotlight

Published on Nov 08, 2023 14:12

Gold prices continued to hover near $1,970 per ounce, extending losses for two consecutive sessions as dollar gained upper hand ahead of Powell speech. Traders closely watching for U.S. Federal Reserve Chair Jerome Powell`s upcoming speech. In recent central bank commentary, Minneapolis Fed President Neel Kashkari emphasized that it`s premature to declare victory over inflation, while Fed Governor Michelle Bowman reiterated the likelihood of further short-term rate hikes. Additionally, the diminishing geopolitical risk premium related to the Israel-Hamas conflict has contributed to reduced demand for gold, as temporary pause in fighting were announced to address humanitarian concerns. MCX gold futures for December are approaching the noteworthy threshold of Rs 60,000 per 10 grams. This fall in price is particularly favourable for Indian consumers as it coincides with the approaching Diwali festival, a time when people traditionally purchase gold due to its significance during these auspicious celebrations.