According to the Shahr-e-Bourse, the price of gold fell significantly in Friday’s trading, affected by the latest statements of Federal Reserve officials and the reduction of expectations for an interest rate adjustment.
The price of an ounce of gold fell 2.10 percent today, finally reaching $4,084.6 cents. The price of gold futures contracts on the Comex New York market also fell 2.39 percent, reaching $4,094.20 cents.
The end of the longest US government shutdown on Thursday has left a significant gap in the release of economic data in the country, an issue that has seriously challenged the decision-making of traders and Federal Reserve members ahead of next month’s policy meeting.
Investors were expecting the new data to reveal signs of slowing economic growth, data that could strengthen the possibility of a December interest rate cut and add to the attractiveness of gold as a non-yielding asset. However, most Fed officials remain cautious about any easing.
Markets now see only a 46% chance that the Fed will cut interest rates by 25 basis points at its December meeting, down from a 50% chance at the start of last week.
Gold typically performs better in times of economic uncertainty and low interest rates, but the past week has seen a drop in physical demand for the metal in key Asian markets.
Silver and platinum fall in tandem
Among other precious metals, the market also fell: silver fell 4.67% to $50.69, while platinum fell 2.53% to $1,545.45.
