Gold prices ease at settlement as US dollar, bond yields rise

Gold prices ended in the red amid volatile trading today, Oct. 24, pressured by the uptick in the US dollar and bond yields, after economic data reinforced fears of continued tightening of monetary policy by the Federal Reserve for a longer period.

Earlier today, S&P Global said its flash US Composite Purchasing Managers Index tracking both the manufacturing and service sectors rose to 51.0 in October from a final September reading of 50.2.

The CME FedWatch Tool showed that investors' odds of the Fed maintaining its monetary policy stance declined to 97% during the forthcoming Oct. 31- Nov. 1 meeting, compared to 98.9% a day before.

At settlement today, bullion for December delivery fell by approximately 0.1%, or $1.7, to $1,986.1 per ounce, trimming losses after touching $1,964.6 in early trading.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.7% to 106.25 points at 08:39 pm Makkah time.