Gold price falls for seventh session

Bengaluru — Gold continued to sell off on Tuesday, clocking its longest losing streak since August 2022 in the last session as US Federal Reserve officials underscored the likelihood of interest rates staying high, with US job openings data due later in the day.

Spot gold was down 0.6% to $1,817.00 an ounce at 3.06am GMT, falling for a seventh consecutive session to its lowest since March 9. US gold futures shed 0.7% to $1,833.40.

The dollar scaled a fresh 10-month peak, while treasury yields hit new 16-year highs after data on Monday showed US manufacturing took a step further towards recovery in September.

A stronger greenback and higher bond yields weigh on bullion, which is priced in dollars and bears no interest.

“Quite simply, everyone’s been surprised by the resilience of the US economy, including policymakers,” said Kyle Rodda, financial market analyst at Capital.com.

Fed officials say monetary policy will need to stay restrictive for “some time” to bring inflation back down to the its 2% target, but their unity around that phrase masks an ongoing debate over another possible rate hike this year.

Markets priced in a 45% chance of another 25-basis-point rate hike this year, but also expect a 42% possibility of some monetary policy easing in the first half of 2024, according to the CME FedWatch tool.

“A break below $1,800 (per ounce) will be fairly eye-catching for traders,” Rodda said, adding “we have seen some buying support emerge there in the past”.

Traders now looked to the US labour department’s job openings and labour turnover survey report, expected at 2pm GMT.

Spot silver dipped 1.4% to $20.77 an ounce, its lowest level in six and a half months, while platinum fell 0.8% to a one-year low of $869.90. Palladium edged down 0.1% to $1,200.04.

Reuters