Gold prices fell slightly, being under pressure from a strengthening US dollar and uncertainty about a Fed hike next week. At the same time, a further fall in prices restrained the negative dynamics of stock markets.
The US Dollar Index, showing the US dollar against a basket of six major currencies, was up 0.25%. Since gold prices are tied to the dollar, a stronger dollar makes the precious metal more expensive for holders of foreign currencies.
The main theme in the markets continues to be yesterday's comments by the Fed Brainard that seem less convincing for a hike and reinforced the view of those investors who believe the Fed in the coming months will keep rates unchanged.
"The focus of is still directed to the possible hike and the dynamics of the market will be completely determined by this expectations.", - Said David Gavett of Marex Spectron.
Gold may continue to trade near $ 1330 resistance before resuming a downward trend, says Reuters technical analyst Wang Tao.
"The probability of Fed rate increase in the short term is reduced, and if the oil quotes stabilize the gold price should find a bottom, at least, before the meeting of the FOMC", - HSBC analyst James Steel said.
The cost of the October futures for gold on the COMEX fell to $ 1324.5 per ounce.

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