Gold turns lower at settlement as US dollar surges

Gold prices remained flat today, Nov. 22, after data indicated the growing inflation forecasts in the US, which reinforced the outcomes of the recent Federal Reserve meeting, during which it decided on the continued tightening of monetary policy.

Bullion for December delivery tumbled 0.45%, or $8.80, at $1,992.80 an ounce, after touching $2,008.30 per ounce in early trading.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, advanced 0.35% at 103.92 points at 09:36 pm Makkah time, after reaching 104.21 points earlier in the session.

Data from the University of Michigan showed that consumer prospects for inflation over the next year rose to 4.5% in November from 4.2% in October, which is the highest reading since April. Further, long-term inflation expectations hit 3.2%, up from 3% last month — the highest since 2011.

Elsewhere, the US Department of Labor’s latest data revealed that initial unemployment claims plunged by 24,000 to 209,000 applications in the week ended Nov. 18, marking a five-week low.