Gold hits one-week peak as US dollar backs off recent highs
Market sees 58% chance of 25 bps US rate cut in December
Silver at 1-week peak; palladium steady after Monday's rally
Several Fed officials due to speak this week
Updates prices as of 1308 GMT
By Rahul Paswan
Nov 19 (Reuters) -Gold prices climbed for a second straight session to hit a one-week peak on Tuesday as the U.S. dollar pulled back from recent highs, while investors awaited comments from Federal Reserve officials for clarity on its interest rate cut policy.
Spot gold XAU= rose 1% to $2,637.10 per ounce by 1308 GMT, the highest since Nov. 11. Prices gained 2% on Monday, recovering from a two-month low hit on Thursday. U.S. gold futures GCv1 added 1% to $2,641.10.
"The selling has run out of steam and that's attracting those potential buyers sitting on the fence waiting for the market to stabilize to get back in," said Ole Hansen, head of commodity strategy at Saxo Bank.
"The dollar has stopped rising and that probably was the necessary trigger."
The U.S. dollar experienced a pullback as investors engaged in profit-taking following last week's stellar rally that saw it scale a one-year high. The decline in the dollar's value makes gold less expensive for buyers holding other currencies. USD/
Multiple Fed officials are scheduled to speak this week, which could offer further insights into the rate cut paths.
Traders currently see a 58%chance of a 25-basis-point cut in December. FEDWATCH
Also boosting gold was an escalation of attacks in the Russia-Ukraine war. Russia launched its largest air strike on Ukraine in nearly three months on Sunday.
Gold, which doesn't pay any interest, performs well in times of geopolitical uncertainty and low-interest rate environments.
Among other metals, spot silver XAG= added 0.7% to $31.38, hitting a one-week high earlier in the session. Platinum XPT= ticked 0.2% lower to $965.52.
Palladium XPD= rose 0.6% to $1,010.39 after rising more than 5% on Monday.
"The long-term outlook for palladium remains negative, in our view, as the metal is projected to be over-supplied due to declining demand from the autocatalyst sector," UBS analysts said in a note.
Spot gold price in USD per oz https://reut.rs/3ZeqZfW
Reporting by Rahul Paswan in Bengaluru; Editing by Ros Russell, Alexandra Hudson and Louise Heavens
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