Gold Down, as Consumer Confidence Rises

By Administrator_ India

Capital Sands

Gold prices fell on Wednesday morning in Asia, while the U.S dollar retreated marginally.

Gold Futures went down 0.28% to $1,788.35 by 11:08 PM ET. Reduced stimulus and interest rate hikes pushed government bond yields up, translating into a higher opportunity cost for holding bullion.

Upbeat corporate earnings and easing concerns about high inflation also dented bullion’s safe-haven appeal.

Tech giants Microsoft Corp and Google owner Alphabet Inc. both beat revenue expectations, while their equity gained globally.

Also, U.S. consumer confidence rose in October as concerns about high inflation were offset by positive labor market prospects, suggesting economic growth was picking up.

Investors now await news from the meetings of the Bank of Japan and European Central Bank, both due this Thursday.

The BOJ is set to maintain its massive stimulus program on Thursday and slash this year’s inflation forecast, which signals that it has no intention to follow crisis-mode policies, experts said.

As for other precious metals, silver fell 0.8% to $23.95 per ounce. Platinum fell 0.7% and palladium went down 0.3%.

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