Gold Prices
Gold prices declined in European trading, marking the first drop in three sessions as investors took profits, pulling the metal away from recent record highs. Despite the dip, losses are tempered by a weaker dollar, which lifted gold to an unprecedented high above $2800 per ounce.
Gold is set for its ninth consecutive monthly gain, which would be its longest monthly winning streak on record.
Current Prices
Today, gold prices slipped 0.5% to $2773 an ounce, after reaching a high of $2790. On Wednesday, prices gained 0.5% as the dollar continued to weaken against major currencies.
The Dollar
The dollar index declined 0.2% on Thursday, marking its fourth straight loss and hitting a weekly low of 103.87 against a basket of major currencies. A weaker dollar tends to make dollar-denominated gold more affordable for investors holding other currencies.
U.S. Interest Rates
Recent data from the U.S. revealed that GDP growth for the third quarter fell short of expectations, suggesting a soft economic landing. Expectations for a 0.25% Fed interest rate cut in November have dropped slightly from 100% to 96%, while the chance of rates remaining unchanged rose to 4%. Traders are now focused on upcoming U.S. economic data on unemployment claims and consumer spending to glean additional insights.
Monthly Trend
Gold has gained 5.25% in October, putting it on track for a ninth consecutive monthly rise, the longest streak since spot trading began in 1997. The precious metal retains its appeal as a safe haven amid geopolitical tensions in the Middle East, with increasing demand in China and India.
SPDR Gold Trust
Holdings in the SPDR Gold Trust increased by 2.87 tons yesterday, reaching 892.65 tons, the highest since October 22.