Precious Metals Prices Fall Sharply

Gold prices fell to their lowest level since July, dropping below $4,000 per ounce as expectations of a hawkish Federal Reserve continued to apply pressure. Silver extended its losses for a third consecutive day, falling to a fresh 11-month low around $50.50 per troy ounce.

US Dollar Softens but Hawkish Fed Outlook Persists

The US Dollar Index extended its recent slide, weighed down by falling bond yields and risk aversion stemming from disappointing tech earnings. However, analysts note that the fundamental case for a stronger dollar remains intact, supported by robust US GDP growth that reinforces expectations for further Federal Reserve policy tightening.

Hawkish Signals from European and Japanese Central Banks

The Euro found support as the European Central Bank signaled that a December interest rate hike remains a possibility to curb inflation. Similarly, the Bank of Japan kept its policy settings unchanged but adopted a more hawkish tone, upgrading its inflation outlook and indicating a path toward steady rate hikes, which caused the Japanese Yen to soften against other major currencies.