Gold hits one-week peak as US dollar backs off recent highs
Market sees 58.8% 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
Rewrites and updates prices as of 0829 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 interest rate cut policy.
Spot gold XAU= rose 0.3% to $2,619.50 per ounce by 0829 GMT, the highest since Nov. 12. Prices gained 2% on Monday, recovering from a two-month low hit on Thursday. U.S. gold futures GCv1 added 0.4% to $2,623.70.
"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 58.9% chance of a 25-basis-point cut in December versus 41.1% odds of holding the rates steady. FEDWATCH
Also helping 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 0.2% to $31.22, hitting a one-week high earlier in the session. Platinum XPT= ticked 0.3% lower to $964.97.
Palladium XPD= was steady at $1,004.30 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
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.
