Gold prices advance as investors heed Fed remarks

Gold prices inched higher today, Nov. 22, benefiting from the decline in the US dollar, amid expectations that the Federal Reserve will slow the pace of monetary tightening next month.

Gold futures for December delivery gained 0.18% to $1,742.70 an ounce at 10:24 am Makkah time, with spot prices also up 0.24% to $1,742.16 per ounce.

Likewise, silver futures for December delivery surged by 0.97% to $21.07 an ounce as the spot price of platinum advanced 0.15% to $983.53 per ounce. The spot price of palladium rose 0.37% to $1,872.20 an ounce.

The main dollar index, which measures the performance of the US currency against a basket of six major currencies, settled at 107.74 points.

Cleveland Fed President Loretta Mester, in an interview with CNBC, endorsed the central bank's tendency to slow interest rate hikes as of the forthcoming meeting, following increases of 75 basis points (bps) at the last four meetings.

In prepared remarks at an event in California, San Francisco Fed President Mary Daly noted that financial markets are overreacting as if interest rates are near 6%, although they are currently ranging between 3.75-4%.

Markets are awaiting several statements from Fed officials throughout the day in search of clues about the central bank's next move. This is ahead of the release of the Fed’s November meeting minutes tomorrow, Nov. 23.