Gold on track to soften for third session as investors wait to hear from Jerome Powell

Gold traded marginally lower on Monday for a third straight session as higher Treasury yields and a stronger dollar continued to weigh on precious metals prices.

Price action
  • Gold for December GCZ22, -0.01% delivery fell $2.40, or 0.2%, to $1,642 per ounce on Comex.
  • Silver for December delivery SIZ22, +0.20% shed 1 cent, or 0.1%, to $19.14 per ounce.
  • December palladium PAZ22, -3.67% fell $19.70, or 1%, to $1,877 per ounce,  while January platinum  PLF23, -0.81% retreated $17.90, or 1.9%, to $931.20 per ounce.
  • Copper for December delivery HGZ22, -1.22% shed 6 cents, or 1.7%, to $3.37 per pound.
What’s happening

A stronger dollar and higher Treasury yields are exerting pressure on precious metals prices early Monday.

But traders will need to wait until Wednesday for the highlight of this week’s event calendar, which is the November meeting of the Federal Reserve’s policy-setting committee, market analysts said.

Investors will hear from Fed Chairman Jerome Powell at the meeting and are looking for signs to confirm expectations that the central bank will shift to smaller interest-rate hikes after delivering what’s expected to be a fourth jumbo rate hike of 75 basis points.

“Trading action in gold and silver may be more subdued until mid-week, as traders are looking ahead to the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and a press conference from Fed Chairman Jerome Powell,” said Jim Wyckoff, senior analyst at Kitco.

“Most expect the FOMC to raise the Fed funds rate by another 0.75%. Traders and investors also want to see what comments the FOMC and Powell make regarding the future path of U.S. monetary policy — specifically, when the Fed will back off the accelerator on aggressively raising interest rates.”

The ICE U.S. Dollar Index DXY, +0.65%, a gauge of the dollar’s strength against a basket of rivals, rose 0.4% to 111.19.

The yield on the 10-year Treasury note TMUBMUSD10Y, 4.042% rose 2 points to 4.036%.

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