Gold Futures Rise as Dollar Struggles, Fed Signals Restrictive Policy
Gold futures settled higher on Thursday, benefiting from a weaker dollar and comments from Federal Reserve officials signaling a potentially restrictive policy stance. The dollar faced some struggles as Chicago Federal Reserve President Austan Goolsbee cautioned against an interest rate overshoot. The dollar index initially fell to 105.38 in the New York session before recovering later on. This rebound, coupled with higher bond yields, limited the upward momentum of gold.
For December delivery, gold futures ended the day $12.00 higher at $1,969.80 per ounce, bouncing back after three consecutive days of declines. Meanwhile, silver futures for December rose $0.177 to $22.905 per ounce, and copper futures for December settled at $3.6405 per pound, gaining $0.0025.
The dollar’s recovery came after Federal Reserve Chair Jerome Powell assured that the central bank would tighten policy further if necessary. Powell emphasized the importance of careful decision-making and indicated that each policy path will be considered on a meeting-by-meeting basis.
In other news, the Labor Department reported a slight decrease in initial jobless claims for the week ended November 4th. First-time claims slipped to 217,000, down 3,000 from the revised level of 220,000 in the previous week. Economists had initially expected a slight increase to 218,000.
Overall, gold futures saw a boost due to the dollar’s struggles and the Federal Reserve’s indications of a potentially restrictive policy. While the dollar did recover and higher bond yields limited gold’s gains, the precious metal still managed to rebound after three days of declines. The market will continue to closely monitor the actions of the Federal Reserve and any further developments that may impact gold prices.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Always consult with a qualified professional before making investment decisions.
