Gold prices decline globally affected by profit-taking operations
Gold prices fell on Wednesday, as investors made profits after prices touched the highest level in more than a week earlier in the session, while the rise of the dollar pressured the morale of traders in the precious metals market, ahead of the release of US employment data this week.
Gold in spot transactions fell 1.1% to $4,447.03 per ounce by 05:47 GMT, after last week touched a record high of $4,549.71. U.S. gold futures for February delivery also fell 0.9% to $4,456.10. Silver also declined in spot transactions by 3.5% to $78.43 per ounce.
Kyle Rhoda, chief financial market analyst at Capital.com, said prices are not significantly affected by fundamental factors at the moment, as much speculation dominates market movement. He added that the general trend of the market was mostly bullish, but it is witnessing fluctuations in both directions, also pointing out that the rise of the dollar plays a role in putting pressure on prices.
The dollar remained close to its highest level in more than two weeks, making its denominated goods the highest cost to buyers in other currencies.
Investors expect the U.S. Federal Reserve to cut interest at least twice this year, while expecting the release of non-farm payows data on Friday for more evidence. ADP's data for private sector jobs and the Job Availability and Employment Turnover Index to be released on Wednesday could shape the market trend.
Federal Reserve Member Stephen Miran said on Tuesday that a strong U.S. interest rate cut is necessary to keep the economy growing.