NEW YORK: Gold prices fell over 1percent on Tuesday as investors took profits following a six-week high in the previous session, while they awaited key US economic data ahead of Federal Reserve policy meeting next week.
Spot gold lost 1.4 percent to USD4,173.91 per ounce by 1109 a.m. ET (1609 GMT). US gold futures for February delivery were down 1.6percent at USD4,205.10 per ounce.
“It’s probably just a little bit of profit taking... the market’s biggest focus of late has been rate cut expectations and those remain pretty steady,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
“We are in a continuation pattern that will eventually lead to an upside breakout and I still like USD5,000 gold early in the new year.”
Recent data pointing to a gradual cooling of the US economy, coupled with dovish signals from Federal Reserve policymakers, has bolstered market expectations for a 25-basis-point rate cut at the Fed’s meeting next week, with traders pricing in an 87percent probability of the move.
Investors are also eyeing November ADP employment report on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, due Friday, which is the Fed’s preferred inflation gauge. Lower interest rates typically benefit non-yielding gold.
Central banks bought 53 tons of gold in October, up 36 percent month-on-month and the largest monthly net demand since the start of 2025, according to the World Gold Council. Silver retreated from the record high of USD58.83 hit on Monday, easing 0.4 percent to USD57.42 per ounce. It has risen over 100percent year-to-date.
“There were no new reasons for the recent price jump (in silver). However, the known reasons still apply, namely tight supply, which is reflected in low inventories on the Shanghai exchanges,” Commerzbank said in a note, adding they expect a further, albeit moderate, price increase to USD59 in the coming year.
Platinum slipped 2.5 percent to USD1,616.37, and palladium gained 1.2 percent to USD1,441.37.
Comments
Comments are closed for this article.