Gold prices changed little on November 1 morning, as the markets are awaiting the results of the meeting of the US Federal Reserve System (FRS), which will be held on November 1-2, Report informs referring to the auction data.
The price of December futures for gold on the New York Comex rose by $1.25, or 0.08%, to $1,641.95 per troy ounce. December futures for silver rose 1.69% to $19.442 an ounce.
According to CME Group, 88% of analysts expect a rate increase of 75 basis points, to 3.75-4% per annum. The rate has already been raised five times since the beginning of the year amid the Fed’s measures to combat high inflation.
Traditionally, a change in the rate affects the dollar, to which gold is sensitive. An expensive dollar makes gold less affordable when buying a precious metal in another currency and vice versa. Against the backdrop of the ongoing tightening cycle, markets will monitor the pace of rate hikes, as well as wait for signals from the regulator on Fed policy next year.
Markets also took notice of the World Gold Council’s quarterly report. According to the document, global demand for gold rose by 28% year-on-year in the third quarter amid record purchases of the precious metal by central banks, while investment demand fell by 47% year-on-year.