Gold prices face selling pressure as the Federal Reserve signals a potential December rate hike, bolstering the US dollar and dampening demand for non-yielding bullion.
Gold prices are under downward pressure following the Federal Reserve's decision to maintain interest rates at the October meeting. The central bank's explicit signal that a December rate hike remains a possibility has strengthened the US dollar, which inversely impacts gold's appeal as a non-yielding asset.
Gold is trading lower because the Federal Reserve kept interest rates steady and signaled that a rate hike in December is still possible, which strengthens the US dollar.
Gold prices retreated on Thursday following the Federal Reserve's decision to maintain steady interest rates at its October meeting. The central bank's hawkish stance, which keeps a potential December rate hike in play, strengthened the US dollar and exerted downward pressure on the precious metal.
Gold is declining because the Federal Reserve signaled that a rate hike remains possible in December, which increases the strength of the US dollar and makes non-yielding assets like gold less attractive.