WASHINGTON (dpa-AFX) - Gold futures settled lower on Monday, extending losses from the previous session, but still posted strong gains for the July - September 2024 quarter.
A firm dollar weighed on gold prices. The dollar index climbed to 100.92, gaining more than 0.5%.
Despite rising geopolitical tensions, the yellow metal lost ground. Israel intensified its military operations against Hezbollah in Lebanon on Sunday, targeting numerous sites following the killing of the group's leader, Sayyed Hassan Nasrallah.
It is feared that Israel's increased attacks against Hezbollah in Lebanon and Houthi in Yemen may bring the region one step closer to a much wider conflict involving Iran and the United States.
Gold futures for October ended down $8.20 or about 0.31% at $2,636.10 an ounce today. Gold futures gained about 13.25% in the quarter. The contract gained about 4.7% in September.
Silver futures for October ended lower by $0.355 or about 1.13% at $31.164 an ounce. Silver futures gained about 6.6% in the quarter, and recorded an 8.5% increase in September.
Copper futures dropped to $4.4995 per pound today, down $0.0415 or about 0.91%.
Fed Chair Jerome Powell, speaking before the annual meeting of the National Association for Business Economics, suggested the central bank will continue to lower interest rates but stressing the downward path for rates is not on a 'preset course.'
Powell said the decision to slash rates by half a percentage point earlier this month reflects the Fed's growing confidence that an appropriate recalibration of monetary policy will maintain strength in the labor market and keep inflation moving sustainably down to the 2% target.
'Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance,' Powell said. 'But we are not on any preset course,' he continued. 'The risks are two-sided, and we will continue to make our decisions meeting by meeting.'
Powell said Fed officials have 'greater confidence' that inflation is on a sustainable path to 2 percent and predicted there would not need to be further cooling in labor market conditions to achieve their objective.
'We remain resolute in our commitment to our maximum-employment and price-stability mandates,' he added. 'Everything we do is in service to our public mission.'
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