CashNews.co
Pedro Goncalves writes:
Gold prices have slipped for the fifth consecutive day, hitting an over one-week low during early European trading on Tuesday, edging closer to the critical $2,630 support level.
At the time of writing, spot gold was down 0.3% at $2,635.43 per ounce, while US gold futures slipped 0.4% to $2,656.50.
This downward trend is largely attributed to diminishing expectations for a substantial interest rate cut by the Federal Reserve in November, which has undermined demand for the non-yielding yellow metal.
Despite this decline, gold’s downside remains somewhat cushioned by a modest weakening of the US dollar, which typically supports USD-denominated commodities.
Geopolitical tensions, particularly ongoing conflicts in the Middle East, may also provide some support for gold prices as investors seek safe-haven assets. However, many traders are likely to adopt a cautious stance, refraining from making aggressive directional bets ahead of the upcoming release of the FOMC meeting minutes on Wednesday.
In addition, key economic indicators such as the US Consumer Price Index (CPI) and the US Producer Price Index (PPI), scheduled for release on Thursday and Friday respectively, are expected to influence short-term dollar dynamics and offer new momentum for gold prices.