Gold finds balance after 3-day decline

Gold prices are following a sideways trend near their lowest level in over three weeks.

Spot gold, which closed Wednesday with a 0.9 percent decline, is trading sideways at the 1,949 dollar level on the 4th trading day of the week.

On the other hand, gold has lost more than 2 percent so far this week as the risk premium brought on by the war continues to diminish and the conflict between Israel and Hamas has not spread to other regions.

While Fed Chair Powell is expected to address the challenges in monetary policy at a panel to be held at the IMF today, markets are pricing in the probability of an interest rate hike in December as almost zero due to rising expectations.

While it is estimated that the statements to be made by Powell will increase volatility in asset prices, analysts will also be monitoring the weekly jobless claims data in the US today.

News Source: 12punto