Gold trades in tight range ahead of US inflation data
Israel-Hezbollah ceasefire in effect
Trump's trade war may be positive for gold - analyst
China's net gold imports via Hong Kong in October down
Add details, comments and updates prices
By Daksh Grover
Nov 27 (Reuters) -Gold prices flitted within a narrow range on Wednesday as investors awaited key U.S. inflation data for insights into the potential scale of a Federal Reserve rate cut next month.
Spot gold XAU= was steady at $2,635.56 per ounce, as of 0222 GMT, moving largely within a slim $9 range during the session. Bullion hit over one-week low on Tuesday.
U.S. gold futures GCv1 rose 0.6% to $2,635.80.
"There's the geopolitical element to all of this, which is to say that some selling pressure has emerged because of the ceasefire agreement with Israel and Lebanon," said Kyle Rodda, financial market analyst at Capital.com.
U.S.-France brokered ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday.
Gold is traditionally considered a safe-haven investment during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.
"In the long run, I think Trump's trade-war may be positive for gold because of higher debt loads and a touch of dedollarisation," Rodda added.
Investors digested a handful of economic data on Tuesday indicating the economy remained on solid footing.
Federal Reserve officials were divided on further rate cuts at their meeting earlier this month, but agreed to limit guidance on the future direction of U.S. monetary policy.
Markets currently sees a 63% chances of a 25-basis-point rate cut by the U.S. Federal Reserve in December, as per the CME group's FedWatch tool.
Traders will closely monitor core PCE figures, initial jobless claims and GDP (first revision), set for release later in the day.
Elsewhere, China's net gold imports via Hong Kong in October fell from September and were down 43% from the previous year, data showed.
Spot silver XAG= edged 0.1% lower to $30.39 per ounce, platinum XPT= was flat at $927.45 and palladium XPD= was down by 0.4% to $973.50.
Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips
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.
