Gold prices fall for the second consecutive day, silver prices fall

Spot silver fell 2.2% to $18.84 an ounce, platinum fell 1.4% to $1,911.49, while palladium rose 0.2% to $1,971.19.

“Bullion is seen under pressure. Spot gold fell on the strengthening of the US dollar, while spot silver fell over two per cent. A similar move was also observed in the MCX platform,” domestic brokerage Geojit said in a note.

Sleep Analysts say the dollar is also expected to stabilize as the next Federal Reserve meeting nears, as it is likely to remain in a narrower range.

Analysts also expected the ECB to rise by 75 basis points on Thursday, even as many economists now believe a recession in the euro area has begun.

The Federal Reserve and central banks around the world are raising interest rates to control inflation. , The US government will release its third quarter GDP report on Thursday.

Fed officials have entered a blackout period ahead of next week’s central bank meeting where rates are expected to rise by 75 basis points. Investors are beginning to speculate that the central bank may be nearing the end of its aggressively tightening campaign.

“A sense of some political stability returned to the UK as Mr. Sunak was appointed the country’s prime minister. This helped the GBP appreciate against the dollar and ensured that the dollar index was below the level of 112” IFA Global said in a note. Gains in dollars make bullion unattractive to foreign buyers.

Meanwhile, speculation grew about a potentially higher Fed even as US inflation remains warm. Higher interest rates increase the opportunity cost of holding zero-yield gold.

“Gold can remain positive as long as 49800 is held in MCX and the upside will be 50550-50750 supply points,” said Jatin Trivedi, VP Research Analyst, LKP Securities. (with agency input)