Gold prices on track to snap longest monthly losing streak ever

Gold prices rose in European trade, maintaining gains for a second day and almost hitting two-week highs as the dollar dropped ahead of Fed Chair Jerome Powell. 

The precious metal is about to snap the longest monthly losing streak ever and mark the largest monthly profit since May 2021

Gold Prices Today

Gold prices rose nearly 0.6% to $1,759 an ounce, after rising 0.5% yesterday, moving close to two-week highs at $1,763.

The Dollar

The dollar index fell 0.25% on Wednesday, the first time in three days away after a short hiatus from losses against major rivals. 

Later today, important US private sector data in November, and GDP data for the third quarter will be released, while Fed Chair Jerome Powell will speak on the economy and policies today as well;. 

Fed Rates

Markets now put a 67.5% chance on a 0.5% rate hike the Federal Reserve in December, and a 32.5% chance of a 0.75% rate hike.

The 0.5% rate hike chance is down from 75% in previous days, which changed after bullish remarks by several Fed officials. 

Fed Statements

Fed Saint Louis President James Bullard said the ECB needs to raise interest rates by a bit more, while New York Fed President John Williams said the Fed needs to carry on its path of rate hikes.

Monthly Tradings 

Gold is up 7.7% so far in November on track for the first monthly profit in eight months, and the largest since May 2021. 

By the end of October, gold marked the longest monthly losing streak, extending for seven months in a row, and marking 2-1/5 year lows at $1,614.

The current monthly gains came as inflation in the US tapered off, which is expected to scale back Fed's rate hikes and policy tightening. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday at 908.09 tones.