Ammon News - Gold fell more than 1% Friday; With the rise of the dollar and bond yields after data showed that core inflation pressures remained high; This reinforced expectations of another big interest rate hike at the US Federal Reserve meeting next week.

And the price of gold in spot transactions fell 1.5 percent to $ 1638.20 an ounce by 15:15 GMT. And US gold futures fell 1.2 percent to $ 1645.10.

The Commerce Department said consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.6% last month.

The dollar rose 0.2%, against its competitors, after the release of US economic data; This made gold more expensive for holders of other currencies. US Treasury yields also rose.

The Federal Reserve is widely expected to raise the interest rate by 75 basis points at the November 1st and 2nd Monetary Policy Committee meeting. Traders are also anticipating another 50 basis point increase in December.

Gold is highly sensitive to rising US interest rates, as this leads to an increase in the opportunity cost of holding bullion that does not yield a return, in addition to the effect of strengthening the dollar.

As for other precious metals, silver fell in spot transactions 2.9% to $19.02 an ounce.

Platinum fell 2% to $940.99. And palladium fell 2.3% to $ 1897.27.

Oil prices fell by about 2% on Friday; After China, the largest importer of crude, expanded its restrictions related to the Corona pandemic, although the two benchmarks are heading for weekly gains on the back of concerns about supplies and the release of positive economic data, contrary to expectations.


Brent crude futures fell $1.70, or 1.8 percent, to $95.26 a barrel by 15:18 GMT, while US West Texas Intermediate crude fell $1.64, or 1.8 percent, to $87.44.

However, Brent and West Texas Intermediate crude are still on track to achieve a weekly rise of about 2% and 3%, respectively.


US gasoline futures are down nearly 8%, while diesel futures are up nearly 2% to their highest level since mid-June.

The drop in crude prices came today, Friday, after Chinese cities intensified Corona restrictions on Thursday; to stop the spread of the virus.

The world’s largest oil and gas companies, including ExxonMobil, Chevron and Equinor, posted huge profits in the third quarter, benefiting from rising energy costs that fueled inflation around the world and hit consumers hard.

These massive profits are drawing criticism from consumer advocacy groups in the United States and Europe as inflation rises.

Meanwhile, OPEC is likely to maintain its forecast that global oil demand will rise for another decade.

Reuters