GOLD prices stalled around the US$1,750 level on Monday (Nov 21), after marking its worst week in five, as traders awaited further cues on central banks’ interest rates strategy.

Spot gold was flat at US$1,749.53 per ounce by 0044 GMT. US gold futures also stalled around US$1,751.90.

Bullion fell 1.2 per cent in the week ending Nov 18, its worst weekly performance since the one ending Oct 14, despite scaling a peak since mid-August on Nov 15.

Analysts said last week that institutional investors are wary and further gains could be elusive.

Asian share markets turned hesitant as investors fretted about the economic fallout from fresh Covid-19 restrictions in China, also the top bullion consumer, while bonds and the dollar braced for more updates on US monetary policy.

Atlanta Federal Reserve president Raphael Bostic said Saturday he is ready to “move away” from three-quarter-point rate hikes at the Fed’s December meeting and feels the Fed’s target policy rate need to rise no more than another percentage point to tackle inflation.

The Fed at its December meeting is still expected to raise rates by half a percentage point, a view endorsed by other Fed officials as well recently.

High interest rates discourage investing in gold, which does not bear any interest.

Physical gold dealers in India were forced to offer the biggest discounts in four months last week as a jump in domestic prices hit demand, while Chinese premiums fell sharply as buying slowed.

Spot silver fell 0.2 per cent to US$20.88 per ounce, platinum also edged 0.2 per cent lower to US$975.21 while palladium was steady around US$1,938.37. REUTERS


(Source : Reuters) , all rights reserved by original source.