Safe-haven gold hits 1-week low on Israel-Hezbollah ceasefire talks
Gold hits lowest since Nov. 18 after Monday's over 3% decline
Trump pledges fresh tariffs on Canada, Mexico, and China
Positive geopolitical developments curbing gold demand-analyst
Updates as of 1217 GMT
By Rahul Paswan
Nov 26 (Reuters) -Gold prices edged up on Tuesday, having touched their lowest in over a week earlier in the session as safe-haven demand for the metal eased on optimism about a potential ceasefire between Israel and Hezbollah militants in Lebanon.
Spot gold XAU= was up 0.3% to $2,633.99 per ounce, as of 1217 GMT, after earlier hitting its lowest since Nov. 18. U.S. gold futures GCv1 were up 0.6% to $2,634.10.
Gold fell over 3% on Monday, its deepest one-day decline in more than five months, on news that Israel looked set to approve a U.S. plan for a ceasefire with Iran-aligned Hezbollah, with further pressure from U.S. President-elect Donald Trump's nomination of Scott Bessent as U.S. Treasury secretary.
"Gold prices today are being influenced by the sustained risk appetite that gained momentum yesterday," said Ricardo Evangelista, senior analyst at ActivTrades. MKTS/GLOB
"Positive geopolitical developments, including reports of a potential ceasefire between Israel and Lebanese militia, further dampened demand for the precious metal."
Trump pledging big tariffs on the United States' three largest trading partners - Canada, Mexico, and China - which could trigger trade wars and boost the metal's safe-haven appeal.
However, "tariffs introduce a range of uncertainties, including the risk of higher inflation, which could limit the scope for interest rate cuts and weigh on gold prices," said Zain Vawda, market analyst at MarketPulse by OANDA.
Investors are also waiting for U.S. consumer confidence data and the minutes from the Fed's November meeting due later on Tuesday.
"These reports are expected to play a pivotal role in shaping expectations about whether the Federal Reserve will proceed with a rate cut in December," Evangelista added.
According to the CME Group's FedWatch Tool, markets currently estimate a 56% chance of a 25-basis-point U.S. rate cut in December.
Lower interest rates reduce the opportunity cost of holding non-yielding gold.
Spot silver XAG= rose 0.8% to $30.54 per ounce, platinum XPT= edged 0.3% lower to $935.80 and palladium XPD= rose 1.4% to $986.75.
Spot gold price in USD per oz https://reut.rs/3Zo2TQ6
Reporting by Rahul Paswan in Bengaluru. Additional reporting by Swati Verma. Editing by 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.
