Financial circle network october 27 news, the market profit taking sentiment is strong and the dollar rose slightly to put pressure, gold futures fell back from the high of $1800 to close slightly lower.
Gold futures for December delivery on the New York Mercantile Exchange fell $13.40, or 0.7 percent, to close at $1,793.40 an ounce. The futures closed up 0.6 percent on Monday and closed above $1,800 an ounce for the first time since Sept. 14. Silver futures for December delivery fell 50 cents, or nearly 2.1 percent, to close at $24.088 an ounce. Silver futures closed up 0.6% on Monday.
Chintan Karnani, head of research at Insignia Consultants, said gold's profit-taking after breaking through the key $1800 level was a slight increase in the dollar, leading to a sell-off in gold prices on Tuesday. The threshold for gold to sustain a short-term rally is $1,800 per ounce.
The ICE dollar index rose 0.2 percent at the close of the gold futures market after the U.S. Economic Consultative Council reported that the consumer confidence index rose to 113.8 points in October from a revised 109.8 in September.
Kitco.com senior analyst Jim Wikov said of technical trading indicators that the uptrend "still exists on the daily histogram" despite the gold price falling on Tuesday. He said the price's "least resistance path" remains sideways higher.
Fears of persistent global inflation have largely supported gold prices, which are seen as a hedge against increasing pricing pressures. However, the expectation that the Fed will be forced to raise interest rates at a faster rate than previously expected could limit the rise in precious metals. The Fed currently has interest rates between 0% and 0.25%.
The Fed is scheduled for a two-day policy meeting on November 2-3, when it is widely expected to announce a reduction in bond purchases. Investors will look for any indications about the rate of reduction to judge how quickly the central bank may act to normalize interest rates.
AvaTrade chief market analyst Nayim Aslam wrote in a research note: "After Fed Chairman Jerome Powell hinted that inflation could persist longer than expected, short-term US Treasury yields fell, and gold prices subsequently jumped above $1800." The latest news, he wrote, triggered "expectations that the Fed will raise interest rates sooner than expected to contain soaring commodity prices."
Copper for December on the New York Mercantile Exchange fell 0.9 percent to $4.486 a pound. Platinum fell 2.9 percent to $1,032.90 an ounce in January and palladium fell 2.1 percent to $2,004.80 an ounce in December.
This article originated from the Financial Circle Network