Gold prices shed 1%, sink to worst close since November 2022

Gold prices ended in the red today, Oct. 2, extending losses for the sixth straight session, as the US dollar and bond yields strengthened in light of expectations of further monetary tightening by the Federal Reserve.

Earlier today, Federal Reserve Governor Michelle Bowman said, “I remain willing to support raising the federal funds rate at a future meeting if the incoming data indicates that progress on inflation has stalled or is too slow to bring inflation to 2% in a timely way.”

Elsewhere, in a research note, ING analysts stressed that “with activity not collapsing, and labor markets certainly not imploding, both the [Federal Reserve and the European Central Bank (ECB)] will be resisting any hint of a rate cut in the coming quarters,” Reuters reported.

In terms of trading, bullion for December delivery shed 1%, or $18.90, to finish at $1,847.20 per ounce — the lowest settlement since Nov. 30, 2022.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, nudged up by 0.60% to 106.86 points at 08:50 pm Makkah time.