Gold fell to its lowest price in 10 months amid anticipation that the Fed is widely expected to hike U.S. interest rates at its December meeting.
The yellow metal traded below $1,170 and touched $1,167 at the end of its trading session yesterday, negatively affected by a strong USD.
Technically speaking, the precious metal could decline further to $1,160. Trading below $1,170 levels could open the door for further declines next week.
The U.S. dollar index recovered yesterday and settled near 100.50
Euro fell vs. USD as markets are awaiting Thursday's European Central Bank policy meeting. The common currency could decline further as the European Central Bank is expected to extend its trillion-euro bond-buying programme beyond March 2017.
The Sterling pound fell to a two-month low vs. USD after the UK parliament accepted the UK's Government request to meet the deadline for leaving the European Union before official talks begin. GBP declined to $1.2680 and could decline further to $1.25 during the week.
Oil prices fell yesterday as crude output rose in virtually every key export region despite plans by OPEC and Russia to limit production, triggering concerns that a fuel glut, that has dogged markets for about two years, might last well into 2017.
The most important economic events:
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.