Gold prices drop, weighed down by strong US dollar

Gold prices slipped today, Nov. 17, weighed down by the recovery in the US dollar amid dwindling demand for the precious metal after geopolitical tensions subsided.

Gold futures for December delivery declined 0.44% to $1,767.90 an ounce at 10:01 am Makkah time, with spot prices also down 0.39% to $1,766.68 per ounce.

Likewise, silver futures for December delivery shed 0.85% to $21.34 an ounce as the spot price of platinum plunged by 0.96% to $2,051.75 per ounce. The spot price of palladium settled at $1,005.08 an ounce.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six major currencies, jumped 0.14% to 106.42 points.

US Federal Reserve member Christopher Waller, in prepared remarks at an event in Phoenix, supported slowing the pace of interest-rate hikes to 50 basis points (bp) in December.

He emphasized that the upcoming personal consumption expenditures (PCE) price index and jobs report will impact this decision.

In an interview with CNBC, San Francisco Federal Reserve President Mary Daly said the US interest rate may end between the 4.75-5% range, indicating that these levels will not cause an economic recession but will rather curb inflation.

Republicans won the 218 seats necessary to control the US House of Representatives, securing power to block US President Joe Biden's political and economic agenda, according to Associated Press (AP) data on Nov. 16.