Gold record rally stalls on higher US dollar, yields
Oct 24 (Reuters) -Gold prices held steady on Thursday after scaling an all-time high in the previous session, with a stronger dollar and an uptick in U.S. Treasury yields offseting support from safe-heaven demand.
FUNDAMENTALS
* Spot gold XAU= was flat at $2,718.32 per ounce, as of 00:13 GMT. U.S. gold futures GCv1 were 0.1% higher to $2,732.10.
* Prices hit a record high of $2,758.37 on Wednesday as U.S. election jitters and Middle East tensions boosted the safe-haven appeal of gold.
* Israeli strikes pounded Beirut's southern suburbs on Wednesday and Hezbollah said it fired precision guided missiles for the first time at Israeli targets.
* U.S. Vice President Harris and former President Trump remain neck and neck in the seven most competitive states with less than two weeks to go until the Nov. 5 election.
* Meanwhile, the benchmark 10-year Treasury yields and dollar hovered near a three-month high, hindering gold's record run. A stronger dollar makes gold more expensive for other currency holders. [US/ USD/]
* U.S. economic activity remained steady from September to early October, with a slight rise in hiring, hinting at a likely 25-basis-point Federal Reserve rate cut soon.
* Markets are pricing in an 90.4% chance for a cut of 25 basis points at the U.S. Federal Reserve's November meeting, according to CME's FedWatch Tool.
* Lower rates increase the appeal of non-yielding bullion.
* Elsewhere, China's imports of gold ore and concentrate plummeted in September because of a proposed rule change that could result in a substantial rise in tax liabilities for buyers.
* Spot silver XAG= rose 0.2% to $33.80 per ounce, after hitting its highest level since late 2012 at $34.87 on Tuesday.
* Platinum XPT= rose 0.6% at $1,022.25 and palladium XPD= gained 2.9% to $1,090.50.
DATA/EVENTS (GMT)
0715 France HCOB Mfg, Svcs, Comp Flash PMIs Oct
0730 Germany HCOB Mfg, Svcs, Comp Flash PMIs Oct
0745 France Business Climate Mfg, Overall Oct
0800 EU HCOB Mfg, Svc, Comp Flash PMIs Oct
0830 UK Flash Comp, Mfg, Svcs PMIs Oct
1000 UK CBI Business Optimism Q4
1230 US Initial Jobless Clm Weekly
1345 US S&P Global Mfg, Svcs, Comp Flash PMIs Oct
1400 US New Home Sales-Units Sept
Reporting by Anmol Choubey in Bengaluru; Editing by Rashmi Aich
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
