Gold falls in price amid expectations for US Fed rate hike

Gold prices fell on November 18 morning, Report informs referring to the auction data.

Traders are still waiting for the US Federal Reserve (Fed) rate hike in December.

The price of December futures for gold on the New York Comex Exchange fell by $11.05, or 0.62%, to $1,764.75 per troy ounce. December silver futures fell 1.82% to $21.133 an ounce.

Since the beginning of the week, gold may show a decline after two weeks of growth, and since the beginning of November, the price of the precious metal has risen by 7.6%, from about $1,640.

Investors are cautious on November 18, continuing to assess the prospects for the Fed’s policy. Markets expect the regulator to raise rates again in December, but slow the rate of increase to 50 bps after four 75 bps hikes. At the same time, the Fed representatives declare their commitment to further tightening of monetary policy against the backdrop of still high inflation.

Gold is sensitive to signals from the Fed, as the actions of the regulator affect the dollar.

In general, trading shows volatility at the end of the week. The dollar is declining against other world currencies, while both gold and oil are getting cheaper. Usually, the depreciation of the US currency, on the contrary, supports the prices, making it more accessible to holders of another currency.