Palladium drops 5% and gold retreats as the safe-haven surge fades

 Palladium drops 5% and gold retreats as the safe-haven surge fades

At 10:11 a.m. ET (1511 GMT), spot gold dropped 0.6% to $1,965.13 an ounce, the lowest level since late October. US gold futures fell to $1,971.70, a 0.9% decline.

Palladium fell to a five-year low on November 7, while gold reached a two-week low as the market shifted its emphasis to interest rate hints from Federal Reserve policymakers, which had sparked a safe-haven rally sparked by Middle East tensions.

At 10:11 a.m. ET (1511 GMT), spot gold dropped 0.6% to $1,965.13 an ounce, the lowest level since late October. US gold futures fell to $1,971.70, a 0.9% decline.

Silver dropped to $22.53 by 2.2%.

The decline in metals was partly fueled by a 0.4% increase in the dollar. [USD] /

"The sooner the first rate cut becomes pushed in the forecast, the healthier it is for gold," said to Everett Millman, chief market commentator at Gainesville Coins, explaining why gold is staying steady at current levels despite predictions that the Fed would soon stop rising rates.

The attraction of zero-yield bullion is increased by lower interest rates, and this week's key speeches will come from Chair Jerome Powell on Wednesday and Thursday as well as other Fed officials.

"Everything would have to go correctly economically to make it possible for gold to sell off (in 2024)," Millman said.

October saw a five-month high for bullion due to the Israel-Hamas conflict. However, recent drops indicate that investors may be becoming less focused on geopolitics, according to a report from Marios Hadjikyriacos, an investment analyst at forex broker XM.

In contrast, palladium dropped 4.6% to $1,055.67. Prices hit a five-year low earlier in the session, dropping as much as 5.1%. Gold dropped 1% to $895.85.

Both are used to lower pollutants in automobile engine exhausts.

UBS predicted in a report that palladium prices would reach $1,050 in the second half of 2024. "Substitution from platinum to platinum and more electric vehicles being offered for sale will likely push the metal through a structural surplus next year," the note said.

Impala Platinum said that, in the face of declining platinum prices, it was providing voluntary employment layoffs at certain South African mines.

Also, traders evaluated a range of economic statistics from China, a significant market.