Reuters
BENGALURU: Gold edged lower in early Asian trading on Tuesday after it touched a six-week peak in the previous session, as investors booked profits even as they awaited remarks by the Federal Reserve Chair and key economic data for interest rate cut cues.
FUNDAMENTALS
Spot gold fell 0.2 per cent to US$4,222.93 per ounce, as of 00:24 GMT, after hitting its highest level since October 21 on Monday.
US gold futures for December delivery were down 0.4 per cent at US$4,256.30 per ounce.
US rate futures are pricing in an 88 per cent chance of a rate cut in December, according to the CME’s FedWatch tool.
White House economic adviser Kevin Hassett said on Sunday that, if chosen, he would be happy to serve as the next Fed chairman. Treasury Secretary Scott Bessent indicated a new chair could be named before Christmas.
Like US President Donald Trump, Hassett believes rates should be lower.
Non-yielding gold tends to perform well in low-interest-rate environments.
Investors are also focusing on key data this week, including November ADP employment figures on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, due Friday.
Fed Chair Jerome Powell’s remarks later in the day are also expected to offer further policy clues.
US stocks closed modestly lower on Monday, weighed down by a jump in Treasury yields and economic data that showed tariffs remained a drag on the manufacturing sector, as investors looked toward the Fed’s policy announcement next week.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.44 per cent to 1,050.01 metric tons on Monday from 1,045.43 tons on Friday.
Elsewhere, silver fell 1 per cent to US$57.40 per ounce, platinum lost 0.3 per cent to US$1,652.05, while palladium gained 0.22 per cent to US$1,427.22.
© New Straits Times Press (M) Bhd
