Gold futures headed for back-to-back losses on Thursday and potentially the sharpest decline in bullion in over a week as the U.S. dollar popped higher.
Investors also note that prices for precious metals are expected to be choppy as investors await clarity from the U.S. Federal Reserve next week on its plans for tapering bond purchases that provided liquidity to markets during the worst of the pandemic back in the spring of 2020.
Metals traders also will be watching for clues on the timing of eventual interest-rate hikes. The Fed’s two-day gathering is set for Sept. 21-22.
December gold GC00,
“Despite a lower inflation reading, investors reduced their exposure to gold due to the expectation that the [U.S. Federal Reserve] will begin tapering this year,” wrote Naeem Aslam, chief market analyst at AvaTrade, in a daily note.
“Traders should note that the price of gold is likely to be volatile in the run-up to next week’s Fed meeting,” Aslam said.
Meanwhile, December silver SIZ21,
Thursday’s metal moves come as the U.S. dollar, as measured by the ICE U.S. Dollar Index DXY,
