Gold prices stabilize on expectations of US interest rate hike

Gold prices stabilized today, Nov. 23, after expectations escalated about a rise in interest in the United States sooner than expected.

US President Joe Biden nominated Federal Reserve Chairman Jerome Powell for a second term, which supported the dollar's rise at the expense of gold prices, which is near its lowest level in two weeks.

On Nov. 22, the White House announced Powell's nomination for a second four-year term, with Lyle Brainard becoming the bank's vice president, after obtaining Senate approval.

This decision coincides with mounting concerns about the continuation of inflationary pressures in the world, after economic data during October showed an increase in consumer and producer prices in the United States and various countries.

At the same time, investors continue to monitor the developments of COVID-19 in the European countries, as the increase in infections in Germany, Austria and a number of other European countries, and the imposition of closing restrictions again, led to a decline in market sentiment, which reflected positively on gold prices and limited its losses.

Gold futures contracts for February delivery settled at $1,809.7 per ounce at 10:15am Makkah time. Spot price for the yellow metal rose 0.1% to reach $1,807.8 per ounce.

Elsewhere, silver futures fell 0.9% to reach $24.1 an ounce. Spot price for platinum delivery rose 1.4% to reach $1,987.7, while palladium gained 0.4% to reach $1,018.4 per ounce.