Gold Trades Lower After FOMC Stays on Target for December

Precious metals prices dropped Friday and headed for a weekly loss, nicked by a firmer dollar that’s been bolstered by the Federal Reserve’s adherence to an interest rate-tightening cycle.

Sharp losses for stocks for the session and the week, which are in part tracking the plunge into a bear market for oil, could limit gold’s downside should risk-off sentiment generate refreshed interest in the haven metal.

December gold GCZ8, -1.14% eased $5.80, or 0.5%, at $1,219.40 an ounce, down over 1% for the week. December silver SIZ8, -1.86% fell 11 cents, or 0.8%, to $14.305 an ounce, and has fallen nearly 3% for the week.

Gold suffered a fourth loss in five sessions on Thursday, then struggled for direction in electronic trading with the U.S. dollar extending gains once the latest policy update from the Federal Reserve signaled a central bank still on a tightening course for later this year and early next.

“Solid Fed conviction to raise interest rates in December was plain in [Thursday’s] announcement. Higher real interest rates, based on the Fed comments, and a slightly stronger U.S. dollar maintained pressure on gold prices,” said Rob Haworth, senior investment strategist at U.S. Bank.

via MarketWatch

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza