Dollar Strength Puts Pressure on Gold

Gold contracts fell again yesterday evening (November 2). This is because the appreciation of the dollar is putting pressure on the gold price. Investors keep an eye on the monetary policy meetings of the Federal Reserve (Fed) and the Bank of England (BoE) this week.

  • Gold contracts were down $6.4, or 0.36%, at $1,789.4 per ounce.
  • Silver was down 56.6 cents, or 2.35%, to close at $23.507 an ounce.
  • Platinum was down $28, or 2.62%, at $1,039.3 per ounce.
  • The palladium contracts were down $44.90, or 2.2%, at $2,007.40 an ounce.

Gold futures fell after the dollar index strengthened.

  • The index measures the dollar’s movements against the six major currencies in a basket of currencies, was up 0.22% at 94.0899.
  • The US dollar strengthened against the Swiss franc at 0.9142 francs from 0.9092 francs.
  • The dollar was higher against the Canadian dollar at 1.2405 Canadian dollars from 1.2370 Canadian dollars.
  • The dollar was lower against the yen to 113.96 yen from 113.98 yen.
  • The euro fell to $1.1581 from $1.1605.
  • The pound fell to $1.3618 from $1.3657.
  • The Australian dollar was lower to $0.7426 from $0.7518.

Investors are looking ahead to the outcome of today’s Fed monetary policy meeting.

While analysts predicted that following this meeting, the Fed will announce a monthly cut in QE of $15 billion starting in November and end QE altogether by mid-2022.

The Bank of England (BoE) is expected to raise interest rates at its monetary policy meeting on November 4 and in December. Interest rates are also expected to rise next year to counter rising inflation.

The Spot Market is Open

Wednesday, November 3, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
14.40
1,779.90
1,780.90
-7.80
-0.44%
1,777.50
1,789.10
Silver
14.40
23.44
23.55
-0.06
-0.28%
23.35
23.63
Platinum
14.40
1,034.00
1,044.00
-1.00
-0.10%
1,030.00
1,046.00
Palladium
14.40
1,950.00
2,100.00
+6.00
0.31%
1,941.00
2,107.00
Rhodium
05.00
13,250.00
15,250.00
0.00
0.00%
13,250.00
15,250.00

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