Gold prices steadied on Tuesday after reaching a record high, underpinned by expectations of more U.S. rate cuts and a weaker dollar, as investors awaited Federal Reserve Chair Jerome Powell's speech for further policy cues.
Spot gold was up 0.2% at $3,753.25 per ounce, as of 0604 GMT, after hitting a record high of $3,759.02 earlier in the session.
U.S. gold futures for December delivery rose 0.3% to $3,787.40.
The U.S. dollar index (.DXY), opens new tab extended its losses from the previous session, making greenback-priced gold cheaper for overseas buyers.
"I think it's predominantly a factor of monetary policy expectations, potentially lower interest rates, and upside risks to inflation," said Capital.com analyst Kyle Rodda.
"The short-term trend is still bullish intact, but on an intraday basis, we do expect a short-term pullback more due to technical factors," OANDA senior market analyst Kelvin Wong said.
Investors are closely awaiting Powell's speech, due at 1635 GMT, for signals on the U.S. central bank's policy. The U.S. Personal Consumption Expenditures index, Fed's preferred inflation gauge, is due on Friday.
New Federal Reserve Governor Stephen Miran said on Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts, a view countered in remarks by three of his colleagues who feel the central bank needs to remain cautious about inflation.
According to the CME FedWatch tool, investors see a 90% probability of a 25-basis-point rate cut in October and a 75% chance of another one in December.
"We see slowing economic growth, higher inflation, the shifting geopolitical landscape and a weaker USD keeping gold's investment demand strong," ANZ said in a note.
Spot silver fell 0.6% to $43.82 per ounce, hovering near a 14-year high. Platinum was down 0.3% at $1,412.64 and palladium inched higher 0.3% to $1,182.24.
"Sustained tightness in the spot market and continued supply dislocation is expected to keep (silver) prices volatile," ANZ added.
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...