Gold falls below $4,000 on Tuesday

Gold slipped below $4,000 per ounce on Tuesday as a firm dollar and reduced expectations for a US interest rate cut weighed on demand. Spot gold fell 0.8 per cent to $3,970.39 per ounce, while December US gold futures dropped nearly 1 per cent to $3,979.30.

The dollar remained near a three-month high after Fed Chair Jerome Powell signalled that further rate cuts this year are not guaranteed, lowering the market’s December rate cut probability to 65 per cent from over 90 per cent. Easing US-China trade tensions also dampened bullion’s appeal.

Gold, which benefits in low-rate and uncertain economic environments, has gained 53 per cent this year but has retreated more than 8 per cent from its October peak. Investors await US ADP employment and ISM PMI data for cues on potential rate moves.

Other metals also fell, with silver down 1.3 per cent at $47.47, platinum 1.1 per cent lower at $1,548.15, and palladium down 2.8 pr cent at $1,404.68.

Attribution: Reuters