Gold steady amid dollar decline, Fed halt bets
Gold prices stabilised on Tuesday after seeing a six-month high, trading at $2,013.29, while prospects of an end to the U.S. Federal Reserve’s interest rate increase cycle kept the dollar and bond yields restrained.
While the dollar floated close to a three-month low, making greenback-priced gold less expensive for other currency holders.
Traders largely anticipate that the U.S. bank will hold rates in December while assessing a 50-50 chance of enablement in May the following year, according to CME’s FedWatch Tool.
The opportunity cost of holding non-interest-bearing assets is decreased by lower interest rates, which frequently boost the price of gold.
Investor focus will be on the personal consumption expenditures (PCE) price index, which is the preferred inflation indicator of the Fed, that is due on Thursday, and the U.S. third-quarter GDP numbers on Wednesday.
“Economic figures coming out of the U.S. this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000,” said Kyle Rodda, a financial market analyst at Capital.com.
On the ground, data showed that China’s net gold imports through Hong Kong dropped for a second consecutive month in October as an occasional economic revival weighed on demand in the major market.
On the other hand, silver rose by 1.3 percent to an almost three-month high, trading at $24.62 per ounce.
Platinum dropped by 1.3 percent to $918.51. Palladium also went down by 0.2 percent to $1,071.32.