Gold prices tumbled today, Nov. 21, as investors evaluated the statements of Federal Reserve officials on the US interest rate, ahead of the issuance of the minutes of the central bank's last meeting this week.
Gold futures for December delivery contracted by 0.42% to $1,747.10 an ounce at 10:00 am Makkah time, with spot prices also down 0.28% to $1,746.03 per ounce.
Likewise, silver futures for December delivery shed 0.87% to $20.81 an ounce as the spot price of platinum plunged by 0.91% to $968 per ounce. The spot price of palladium declined 0.75% to $1,922.32 an ounce.
Meanwhile, the main dollar index, which measures the performance of the US currency against a basket of six major currencies, increased 0.53% to 107.53 points.
Addressing the opening of a conference organized by the US central bank, Boston Fed President Susan Collins stressed that the recent economic data did not alter her view of what the Fed needs to do in the long term, anticipating additional interest rate hikes.
In a research note, Lindsey Bigza and Lauren Henderson, analysts at Stifel, Nicholas & Co, said that reaching the 2% inflation target is still far from reach despite the slowdown in US inflation. They indicated that interest rates need to rise between 8-9%, from the current level of 3.75-4%.
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