Gold prices settle at lowest in 5 weeks

Gold settled with a loss today, Sept. 26, as the US dollar surged to a 10-month high amid market analysis of the recent economic data issued, coupled with growing expectations of further monetary tightening in the US.

Minneapolis Federal Reserve Bank President Neel Kashkari said he sees a "soft landing" for the US economy likelier than not, “after potentially one more 25-basis-point federal funds rate increase later this year.” Thus, he expects a 60% chance the US central bank can curb inflation to its 2% target.

Elsewhere, the US Conference Board revealed earlier today that its Consumer Confidence Index tumbled to 103 in September from an upwardly revised 108.7 in August, falling short of the average consensus of 105.5.

In terms of trading, gold prices for December delivery plunged by 0.85%, or $16.80, to finish at $1,919.80 per ounce — the lowest since Aug. 18.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, gained 0.20% to 101.19 points at 08:42 pm Makkah time, hitting its highest level since November 2022.