Gold prices dip as US dollar firms

Gold prices reversed its upward trajectory today, Jan. 16, amid expectations that the Federal Reserve will slow the pace of interest rate hikes at the upcoming meeting.

Most analysts expect the Fed to raise interest rates by 25 basis points (bps) during this meeting, which will be held between Jan. 31-Feb. 1.

Gold futures for February delivery shed 0.3%, or $5.8, to $1,906.1 an ounce at 11:38 am Makkah time. Similarly, spot prices fell 0.43% to $1,911.98 an ounce, after hitting $1,929 earlier today — the highest since late April 2022.

Likewise, silver futures for March delivery tumbled 0.32% to $24.3 an ounce. The spot price of platinum and palladium also plunged by 1.1% and 2.06% to $1,057.43 and $1,752.81 per ounce, respectively.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.27% to 102.48 points.