Commodities Update: Gold low as Greenback gains from expected Rate hike

Looming concerns over an expected interest rate hike in December brought down the prices of Gold slightly down as investors weigh the market information to gather a sense of future outlook.

Stronger dollar continues to weigh down prices of bullion amidst Donald Trump’s plan to unveil Tax plan materializes. Shares rose on Monday anticipating a progress on Major Tax Reform by Trump Administration, as promised during campaign, with dollar continuing to linger around its one month highs on growing expectations of interest rate raise during December by the year end.

Spot gold had declined 0.1 percent to $1,291.81 per ounce by 0729 GMT.

U.S. gold futures for December delivery fell 0.5 percent to $1,294.90.

Investors have all eyes on inflation data, as any given rise in the numbers could lock the prospects of future interest rate growth. Prices of gold have long been vulnerable to Dollar Rates and interest rate hikes, as investors decide between low yielding bullion and other alternative investments.

Despite the rising concerns over interest rates, tensions between US and North Korea have capped any losses in short-term.

Among other precious metals, silver rose 0.3 percent to $16.81 per ounce. In the previous session, prices dropped 2.4 percent, their biggest fall since mid-August.

Platinum eased 0.1 percent to $920.99 per ounce, after slipping about 2 percent in the previous session, its biggest fall since early July.

Palladium declined 0.2 percent to $911.90 per ounce.