Gold Holds Above Gains Ahead of US Data
Gold steadied after a rally as traders shifted focus to a key US inflation report due later this week that could shape expectations ahead of the Federal Reserve’s final interest rate decision of the year.
Bullion prices held near $2,660 an ounce — near a two-week high — after China’s central bank added the precious metal to its reserves for the first time in seven months.
Geopolitical concerns also fueled demand for safe-haven assets amid fears of a power vacuum in Syria after Bashar al-Assad was ousted from power over the weekend.
Data on Wednesday and Thursday will give Fed officials a final look at the inflation environment ahead of their policy meeting next week
Any sign that progress has stalled in reining in rising prices could dampen the chances of a cut, although swap markets are pricing in an 86% chance of a 25-point decline. Higher borrowing costs are typically negative for bullion, as it does not pay interest.
Gold surged to an all-time high above $2,790 an ounce in October, supported by monetary easing by the Fed and rising demand for safe-haven assets amid rising tensions in the Middle East and Ukraine.
Gold prices have eased since the dollar strengthened following Donald Trump’s victory in the U.S. election, but remain 28% higher this year.
Spot gold was flat at $2,659.71 an ounce at 8:20 a.m. in Singapore, following a 1% gain on Monday. The Bloomberg Dollar Spot Index was little changed. Silver and palladium edged up, while platinum was steady.
Source: Bloomberg
