Gold prices widen losses, near lowest level in 1.5 months

Gold prices widened losses on Tuesday, nearing the lowest level in a month and a half, amid the follow-up to the statements of Federal Reserve officials about monetary policy.

Gold futures contracts for December delivery fell 0.7%, or $12.80, to reach $1,739.20 per ounce at 12:50pm Makkah time, after reaching $1,735.30 in early trade - the lowest level since Aug. 11.

Spot price for the yellow metal rose 0.7% to reach $1,738.34 per ounce.

Elsewhere, silver futures for December delivery fell 1.6% to reach $22.33 an ounce. Spot price for platinum delivery declined 0.9% to reach $974.52, while palladium decreased 2% to reach $1,909 per ounce.

The dollar index, which measures the performance of the US currency against a basket of six currencies, rose 0.3% to reach at 93.626 points.

In his prepared remarks published on Sept. 27, Federal Reserve Chairman, Jerome Powell, emphasized that economic growth continued to accelerate but faced upward pressures on prices due to disruptions in the supply chain and other factors.

He stressed that the reasons for the recent rise in inflation may last longer than expected.

Meanwhile, Federal Reserve Board Member, Lael Brainard, stated that US employment is still below the level needed to start reducing bond purchases.