Pedro Gonçalves writes:
Gold prices have fallen for a fifth straight day, hitting their lowest in more than a week in early European trading on Tuesday and closing in on key support at $2,630.
At the time of writing, spot gold was down 0.3% to $2,635.43 an ounce and U.S. gold futures were down 0.4% to $2,656.50.
This downward trend is primarily due to lower expectations for a deep interest rate cut by the Federal Reserve in November, which hurts demand for the non-yielding yellow metal.
Despite this decline, gold’s downside is still cushioned somewhat by the gradual decline in the US dollar, which typically supports US dollar-denominated products.
Geopolitical tensions, particularly the ongoing conflict in the Middle East, could also provide some support to gold prices as investors seek safe haven assets. However, many traders are likely to refrain from making aggressive bets and take a cautious stance ahead of Wednesday’s release of the FOMC minutes.
Additionally, key economic indicators such as the US Consumer Price Index (CPI) and US Producer Price Index (PPI), scheduled to be released on Thursday and Friday, respectively, will influence near-term dollar trends and add new momentum to gold. expected to bring about price.