Gold gains on safe-haven demand, US markets closed for Thanksgiving
Renewed investor interest has supported gold - analyst
Geopolitical risks remain elevated - analyst
Markets see a 70% chance of a December US rate cut
Recasts throughout
By Rahul Paswan and Sherin Elizabeth Varghese
Nov 28 (Reuters) -Gold prices rose on Thursday as geopolitical uncertainty and trade war concerns boosted safe-haven demand, with low trading volumes expected as U.S. markets are closed for the Thanksgiving holiday.
Spot gold XAU= was up 0.4% to $2,645.41 per ounce at 1205 GMT. U.S. gold futures GCv1 were up 0.3% to $2,644.70. Bullion posted its deepest one-day decline in more than five months on Monday.
Geopolitical risks remain elevated with ongoing war in Russia-Ukraine, and while an Israel-Hezbollah ceasefire is in force, Israel's contingencies for retaliation keep tensions alive, said Aneeka Gupta, director of macroeconomic research at WisdomTree.
U.S. President-elect Donald Trump's pledge to hit Canada and Mexico with tariffs was also having an effect, she added. "It did increase a bit of concern on the possible repercussions from these two countries. So that continues to remain an important support factor for gold."
However, Trump's tariff plans are also seen as potential drivers of inflation, which could prompt the U.S. Federal Reserve to slow its interest rate cutting, potentially limiting any further rally in non-yielding bullion.
Data on Wednesday showed progress in lowering U.S. inflation appears to have stalled in the past months, suggesting the Fed may proceed cautiously with further rate cuts.
Markets now see a 70% chance of a quarter-point rate cut in December. Gold tends to do well in a lower interest rate environment. FEDWATCH
Following a Republican clean sweep in the Nov. 5 U.S. election, bullion saw a sharp sell-off.
"After that sell-off ... there has been some revived investor interest that has given some support, while weaker-handed holders were flushed out," said StoneX analyst Rhona O'Connell.
"The market now is a bit more careful and prices probably will be range-bound with more downward bias going into the year-end," said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Spot silver XAG= was steady at $30.07 per ounce, platinum XPT= rose 0.4% to $930.75 and palladium XPD= gained 0.8% to $979.81.
Spot gold price in USD per oz https://reut.rs/49c2tj9
Reporting by Rahul Paswan and Sherin Elizabeth Varghese in Bengaluru. Editing by Jason Neely and Mark Potter
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.
