Gold logs highest settlement since July-end after Powell's speech

Gold prices ticked higher at settlement today, Oct. 19, as remarks from Federal Reserve Chairman Jerome Powell fueled hopes that the US central bank may pause rate hikes at the coming meeting.

Traders now see a 99% chance of no rate hike in November, compared with a 93.4% chance one day before Powell’s remarks, according to the CME FedWatch Tool.

This came despite the release of economic data that reflected the continued flexibility of the US labor market. Weekly jobless claims totaled a seasonally adjusted 198,000 for the period ended Oct. 14, a decline of 13,000 from the week before and below forecasts for 210,000 applications. It was also the lowest weekly level since Jan. 21.

In terms of trading, gold prices for December delivery gained 0.60%, or $12.20, to close at $1,980.50 per ounce — the highest settlement since late July, after falling to $1,957 an ounce in early trading.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, slipped 0.35% to 106.21 points at 08:42 pm Makkah time.