2023-11-28T06:10:54+00:00
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/ Gold stabilized after touching the highest level in six months, on Tuesday, as expectations of an end to the cycle of raising US interest rates kept the dollar and bond yields under control.
There was little change in gold in spot transactions at $2,014.12 per ounce by 0412 GMT, after reaching its highest levels since may 16, according to Reuters.
US gold futures for December delivery rose 0.1 percent to $2,014.20 an ounce.
The dollar index (.DXY) touched its lowest levels as late August against its rivals, making gold less expensive for holders of other currencies. The yield on the 10-year Treasury note hovered near a two-month low of 4.3630%.
recent data showing signs of slowing inflation in the US has reinforced expectations that the Fed may begin easing monetary conditions sooner than expected, with the market now awaiting personal consumption expenditures (PCE) data – the Fed’s preferred measure of inflation – Thursday.
Traders widely expect the US central bank to hold interest rates in December, while anticipating a roughly 50-50 chance of easing in May next year, CME’s FedWatch tool shows.
Lower interest rates reduce the opportunity cost of holding non-interest bearing bullion.
Investors are also focused on revised US third-quarter GDP numbers, due on Wednesday.
Meanwhile, net gold imports to China, the largest consumer, via Hong Kong fell for the second straight month in October, as an erratic economic recovery weighed on demand in the key bullion market, data showed on Monday.
Silver fell in spot transactions 0.3 percent to $24.55 per ounce, and platinum fell 0.5 percent to $913.90. Palladium fell 0.8 percent to $1,061.41 an ounce.