Gold prices tumble as inflation woes persist

Gold prices inched lower today, Nov. 8, after rising to a four-week high during yesterday's session, as inflation fears continued to dominate market focus.

Gold futures for December delivery declined 0.54% to $1,671.50 an ounce at 10:26 am Makkah time, as spot prices shed 0.36% to $1,669.46 per ounce.

Likewise, silver futures for December delivery plunged by 1.02% to $20.70 an ounce, with the spot price of platinum also down 0.15% to $977.45 per ounce. The spot price of palladium fell 0.50% to $1,887.25 an ounce.

Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six major currencies, advanced 0.29% to 110.53 points.

Jan Hatzius, chief economist at Goldman Sachs, sees the probability of a recession in the US economy at 35% over the next 12 months, noting that the prospects for an economic crunch are weak despite the continued rise in interest rates.

Similarly, Michael Langford, director of consulting firm AirGuide, forecasts pressure to continue on gold this week as markets await inflation data and the US midterm elections. He explained that gold inflows from exchange-traded funds are weighing on the precious metal.