Gold ends down for 3rd straight session, dips below $1,900

Gold closed in the red today, Sept. 27, in anticipation of the release of some US economic readings as the US dollar extended gains amid growing expectations of further monetary tightening by the Federal Reserve.

In an interview with CNBC, Minneapolis Federal Reserve Bank President Neel Kashkari said he is unsure whether the US central bank has lifted interest rates enough to curb inflation.

Meanwhile, Deputy Chief Economist at the Mortgage Bankers Association Joel Kahn revealed that the 30-year fixed-rate mortgages advanced late last week to 7.41% — the highest rate since December 2000.

August’s Personal Consumption Expenditures Price Index — the Fed’s preferred inflation gauge — is scheduled to be issued on Sept. 29, which is widely monitored for more cues about the course of US monetary policy.

In terms of trading, gold prices for December delivery plunged by 1.50%, or $28.90, to finish at $1,890.90 per ounce, marking the lowest settlement since February 24.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.50% to 106.78 points at 08:50 pm Makkah time — a peak last seen in November 2022.