Gold plummets as the dollar gains strength

Gold plummets as the dollar gains strength

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Gold prices were down on Tuesday morning as the greenback started gaining strength. Meanwhile, several policymakers are waiting for the decisions from central banks, as stress regarding rising inflation continues. 

Gold futures inched down to USD 1,792.40 by 0.19 per cent at  3:19 AM GMT (11:19 PM ET). Moreover, the dollar that goes opposite to the yellow metal increased on Tuesday. 

Meanwhile, the Reserve Bank of Australia is all set to exhibit its policy decision in the day. 

On the other hand, the latest policy decision by the US Federal Reserve will be announced on Wednesday. However, the Fed has a difficult task in its hands of facing price challenges. Therefore, there will be an attempt to counter or balance the rising inflation by increasing the wage and offering maximum jobs to restore what was lost during COVID-19. 

The Fed is going to raise the interest rates a year earlier than the forecast made by Goldman Sachs to July 2022. It happened because it is being anticipated that inflation will remain elevated. 

On another side, the Bank of England is going to announce its policy on Thursday. However, as per sources, it could be the most unpredictable decision rates in years. 

Investors and traders are contemplating the opportunities of the central bank handing down its first interest rate increase since the onset of the COVID-19 pandemic. 

Notably, the US ISM (Institute of Supply Management) manufacturing PMI (purchasing managers index), released on Monday. It was 60.8 in October. The PMI manufacturing was lesser than anticipated 58.4.

The non-manufacturing ISM PMI will arrive on Wednesday. Exports, imports, and other trade data will be declared on Wednesday. 

The non-farm payrolls and the US jobs reports will come on Friday. In other metals, silver plunged by 0.2 per cent. Palladium remained flat at USD 2,047.26, while platinum skidded 0.7 per cent. 

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