Global Gold Prices Experience Significant Decline

Dollar Strength and Fed Rate Cut Doubts Drive Downturn

Global gold prices experienced a significant decline of more than 1% during Thursday's trading session, driven by the strengthening US dollar and fading market expectations of a Federal Reserve interest rate cut in December. The precious metal's value dropped as investors reassessed their positions amid shifting monetary policy outlook.

Technical Price Movement

Spot gold prices decreased by 0.4% to settle at $4,066.32 per troy ounce by 09:20 GMT, after initially falling more than 1% earlier in the session. Similarly, US gold futures for December delivery declined 0.4% to $4,065.30 per troy ounce. The price movement comes as market participants await crucial economic data that has been delayed due to recent government developments.

Market Context and Future Outlook

The decline in gold prices reflects broader market dynamics, including the strengthening US dollar and changing expectations regarding Federal Reserve monetary policy. Investors are now focused on upcoming economic indicators, particularly the delayed US employment data, which has been postponed following a government shutdown. This data release is expected to provide further direction for both currency and precious metals markets.