Gold Dips Against Stronger Dollar, Investors Consider Data Explosion


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* 2nd estimate of US GDP for the 3rd quarter, first jobless claims at 13:30 GMT

* FOMC to publish minutes of political meeting on 2-3 November

Nov. 24 (Reuters) – Gold prices fell on Wednesday, forecast for a fifth straight session of losses as the US dollar strengthened and investors braced for the report of the Federal Reserve’s policy meeting in November and key economic data.

Spot gold fell 0.3% to $ 1,784.30 an ounce at 1:02 p.m. GMT, while US gold futures were little changed at $ 1,784.30.

The precious metal slipped below $ 1,800 earlier this week as the re-appointment of Fed Chairman Jerome Powell confirmed bets on faster monetary policy tightening and boosted the dollar.

A stronger dollar makes gold more expensive for holders of other currencies.

“The strength of the dollar and market expectations for more aggressive Fed action are pushing gold lower,” StoneX analyst Rhona O’Connell said, adding investor sentiment also remained cautious ahead of the minutes. from the last Fed meeting.

Some relief that there will be continuity now that Powell has been renamed has boosted financial markets in general and put pressure on gold, O’Connell said.

The focus will also be on a series of US data, including economic growth figures and the pivotal price index for personal consumption expenditure, due later today.

“Strong GDP (gross domestic product) data may confirm that the US economy is strong and may put more pressure on the Fed to accelerate the reduction. But investors are more interested in the inflation data as gold is trying to approach $ 1,800, “said Carlo Alberto De Casa. external analyst at Kinesis Money.

Powell insisted for several months that the current inflation surge was likely transient and said the central bank would be “patient” in deciding when to start raising its benchmark rate near zero.

Higher interest rates increase the opportunity cost of holding unproductive bullion.

Among other precious metals, spot platinum gained 0.8% to $ 976.94 an ounce, palladium rose 0.4% to $ 1,876.39.

Silver fell almost 1% to $ 23.42. (Reporting by Arundhati Sarkar and Kavya Guduru in Bengaluru; Editing by Aditya Soni, Louise Heavens and Emelia Sithole-Matarise)


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