Gold Steady After Cease-Fire Deal as Traders Look to US Data
Gold was steady as a cease-fire deal in the Middle East sapped haven demand, and investors waited for US economic data that will provide clues on the Federal Reserve’s rate path.
Bullion traded near $2,630 an ounce as Israel and Lebanese militant group Hezbollah agreed to a 60-day suspension of hostilities. Anticipation of an agreement had helped push gold down by more than 3% on Monday.
Gold is still up more than 25% this year on easing US monetary policy and heightened geopolitical risks, but has been hit by a stronger dollar this month in the wake of Donald Trump’s election victory. However, it didn’t react significantly on Tuesday to the president-elect’s threat of 25% import tariffs on Canada and Mexico, which buoyed the greenback.
Minutes of the Fed’s November meeting and personal consumption expenditure data — the monetary authority’s preferred gauge of inflation — are among the most significant reports due this week.
Spot gold dipped 0.1% to $2,630.57 an ounce as of 8:17 a.m. in Singapore. The Bloomberg Dollar Spot Index declined 0.1%. Silver, platinum and palladium were all steady.
Source: Bloomberg
