Gold prices fell to their lowest in more than a week on Tuesday (November 18th) as fading bets on a Federal Reserve interest rate cut next month weighed on demand ahead of the release of delayed US economic data this week.

Spot gold fell 0.3% to $4,033.29 an ounce, as of 09:09 GMT, after earlier hitting its lowest level since November 10. US gold futures for December delivery fell 1% to $4,032.60 an ounce.

"Market participants are expecting a US rate cut following more aggressive comments from Fed officials," said UBS analyst Giovanni Staunovo. "I expect gold prices to bottom soon, as I still see the Fed cutting rates several times over the next few quarters, and central bank diversification into gold remains strong." The market has cut its bets for a rate cut next month to just over 46%, down from 67% last week, according to the CME FedWatch tool.

The longest-ever U.S. government shutdown, which ended last week, led to a halt in official economic data, leaving policymakers and traders scrambling ahead of next month's Fed policy meeting.

Traders had hoped the resumption of official data would support a December rate cut, but those hopes faded as more Fed officials signaled caution last week.

Fed Vice Chairman Philip Jefferson said on Monday that the central bank needs to "proceed slowly" with further rate cuts. Non-yielding gold tends to perform well in low-interest rates and during times of economic uncertainty.

Meanwhile, the market awaits the release of delayed U.S. data this week, with minutes from the Fed's last meeting due on Wednesday and September non-farm payrolls on Thursday. "We still see a favorable long-term fundamental backdrop for gold. The US economy continues to weaken, US interest rates are expected to fall, and the US dollar is expected to weaken as a result," said Julius Baer analyst Carsten Menke.

Elsewhere, spot silver was steady at $50.2 per ounce, platinum rose almost 0.1% to $1,534.29, and palladium was steady at $1,393.57. (alg)

Source: Reuters.com