Gold prices advance in run-up to Fed meeting

Gold prices rose today, Nov. 1, driven by the decline in the US dollar and Treasury bond yields, amid concerns about a slowdown in the US economy following the continued monetary tightening by the Federal Reserve.

Gold futures for December delivery gained 0.41% to $1,647.50 an ounce at 10:00 am Makkah time, with spot prices also up 0.89% to $1,648.55 per ounce.

Similarly, silver futures for December delivery surged 2.62% to $19.61 an ounce. The spot price of platinum advanced 1.56% to $950.19 per ounce, as the spot price of palladium also increased by 1.68% to $1,872.21 an ounce.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six major currencies, plunged by 0.54% to 110.97 points.

In a research note, Ian Shepherdson, chief economist at Pantheon Macroeconomics, predicted that the Fed will stop lifting interest rates sooner than expected by most investors. There are also signs of a stagnant US labor market.

Financial markets are awaiting tomorrow’s monetary policy decision by Fed officials, whose two-day meeting is scheduled to start later today. Forecasts suggest that this meeting will see the US central bank raise interest rates by 75 basis points (bps).

Nov. 4 will see the release of the US monthly jobs report, which investors are watching closely to assess indicators of wages, jobs and unemployment as well as their impact on the recent US interest-rate hikes.