Gold prices slip in Tuesday early trade

Gold prices dipped on Tuesday early trade. Spot gold fell 0.4 per cent to $2,507.96 per ounce at 0238 GMT. US gold futures also declined by 0.5 per cent to $2,543.20.

The dollar index rose against other currencies, reducing gold’s attractiveness to foreign investors.

The likelihood of a September US rate cut is certain, but the size of the cut is still up for debate, leading investors to adopt a wait-and-see approach.

Traders predict a 70 per cent chance of a 25-basis-point rate cut and a 30 per cent chance of a larger 50-bp reduction, according to the CME FedWatch tool.

In a low-interest-rate environment, gold, a non-yielding asset, tends to become more appealing.

Silver prices increased by 0.1 per cent to $29.93 per ounce, while platinum prices dropped by 0.5 per cent to $957.55 and palladium prices rose by 0.1 per cent to $959.90.

Attribution: Reuters

Subediting: M. S. Salama