On Thursday, gold prices drop lower as investors snatched up their profits after 1 percent hike in gains during the previous season.
Federal policymakers believe that interest will need to rise during the next term.
During the last policy meeting, some members took a look at inflation and made notes. They said that they would be looking at economic data that comes up shortly before making announcing rises in future rates.
Gold’s spot prices were 0.2 percent lower than usual at $1,289.99 an ounce.
Gold futures for December in the U.S. dropped down 0.2 percent as well at $1,289.70.
According to John Sharma, an economist at National Australia Bank, there is some profit-taking going on. Especially as investors look forward to a rate hike from the Fed by next month. Some investors may be thinking that gold prices have gotten too high and will drop the rate increase.
Gold Prices Drop Again Before The End Of The Year
There are some inflation concerns at the Fed. They don’t know how things will turn out during the medium term. Currently, there is a lot of uncertainty all over when it comes to the precious metal. They say investors can see it the most in the way the gold is moving.
Earlier on in the week, Janet Yellen, who holds a chair with the Fed, chooses to stick with her inflation predictions. She believes that U.S. inflation will soon recover.
Jeffery Hally, one of the senior market analyst with OANDA says that traders aren’t too excited about the hikes.
As one of the head beneficiaries of the results from the general dollar sell-off, things will be quiet for the metal as Thanksgiving comes to an end. Trading over the next few days will be slow.
During the Thanksgiving holiday, the selling of gold slows down. More-so in the States. However, Japan celebrates the holiday as well publicly.