2023.11.1618:00:00UTC+00Gold Futures Settle Higher As Dollar Drops On Easing Concerns About Rates

Gold prices climbed higher on Thursday as investors picked up the safe-haven asset amid concerns about global economic slowdown, and hopes that the Federal Reserve will hold rates unchanged for now.

A subdued dollar contributed as well to the yellow metal's uptick. With inflation data from the US and UK coming in cooler-than-expected, there are expectations that both the Fed and Bank of England will not hike rates for now, and might even reduce rates by the middle of next year.

The dollar index, which dropped to 104.01, recovered subsequently, but at 104.30, remained below the flat line.

Gold futures for December ended up $23.00 at $1,987.30 an ounce.

Silver futures for December ended higher by $0.395 at $23.933 an ounce, while Copper futures for December settled at $3.7025 per pound, down $0.0160 from the previous close.

"Gold prices are pushing higher once more after running into some resistance around $1,980 on Wednesday. While it hasn't yet moved above yesterday's highs, momentum still looks healthy and gold bulls may have sights set on $2,000 once more," says Craig Erlam, Senior Market Analyst at OANDA, UK & EMEA.

"Recent data has been very favorable for gold, it will be interesting to see whether that will be enough to propel it above this big psychological zone," Erlam adds.

Data from the Labor Department today showed import prices slid by 0.8% in October after climbing by an upwardly revised 0.4% in September. Economists had expected import prices to decrease by 0.3% compared to the 0.1% uptick originally reported for the previous month.

Meanwhile, the Labor Department said export prices slumped by 1.1% in October after rising by a downwardly revised 0.5% in September. Export prices were expected to decline by 0.5% compared to the 0.7% increase originally reported for the previous month.

A separate Labor Department report showed initial jobless claims climbed by much more than expected in the week ended November 11th, rising to 231,000, an increase of 13,000 from the previous week's revised level of 218,000.

Economists had expected jobless claims to inch up to 220,000 from the 217,000 originally reported for the previous week.

The Federal Reserve also released a report showing industrial production fell by more than expected in October due in part to the strikes at several major motor vehicle manufacturers.