Gold prices edged higher on Tuesday, supported by growing expectations of a US interest rate cut this month, as focus shifted to upcoming economic data for additional insights.
Gold price per tola decreases Rs1,700 in Pakistan
Fundamentals
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Spot gold was up 0.1% at $2,642.42 per ounce, as of 0103 GMT, after falling as much as 1% on Monday. US gold futures edged 0.3% higher to $2,665.30.
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Federal Reserve Governor Christopher Waller said on Monday that with inflation still forecast to fall to 2% he is inclined “at present” to support another rate cut later this month.
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“I expect it will be appropriate to continue to move to a more neutral policy setting over time,” Fed Bank of New York President John Williams said.
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The comments led investors to boost expectations for a rate cut at the Fed’s Dec. 17-18 meeting to nearly 75%.
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Bullion tends to thrive in a low-interest-rate environment.
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Key US data this week includes the job openings due later in the day, the ADP employment report on Wednesday and payrolls report on Friday.
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Data showed that US manufacturing contracted at a moderate pace in November, with orders growing for the first time in eight months and factories facing significantly lower prices for inputs.
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On the geopolitical front, Israeli strikes on the Lebanese towns of Talousa and Haris killed nine and injured three on Monday, as the Israeli military targeted dozens of Hezbollah positions across Lebanon, contributing to higher gold prices.
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Gold is often regarded as a safe-haven investment during periods of economic or geopolitical instability.
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Spot silver added 0.3% to $30.60 per ounce, platinum steadied at $946.60 and palladium rose 0.5% to $985.86.
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