Eco
Gold prices declined on Friday, November 6, influenced by the recovery in oil prices which raised inflation concerns and strengthened expectations for prolonged higher interest rates. The spot gold price fell by 1.1% to reach $4040 per ounce by 08:43 AM, while the precious metal remains on track for its best weekly performance since late August. Elia Spivak, Head of Global Macro Economics at Tastylive, noted that the notable recovery in crude oil prices over the previous day is an ongoing inflationary factor putting pressure on gold. Despite oil prices rising over 1%, they are set to record a sharp weekly decline. Rising energy costs could reinforce expectations that the U.S. Federal Reserve will keep interest rates elevated for a longer period. Tim Woerter, Chief Market Analyst at KCM Trade, stated that risk-off behavior is prompting investors to liquidate gold positions to free up liquidity and cover margin calls in other markets. According to CME Group's FedWatch Tool, traders currently see a 68% probability of an interest rate hike in December, down from near certainty last month.
