Gold Trades Down, Still Unable to Challenge October Record
Gold traded lower for a second day despite a weaker dollar as the metal remains unable to challenge its Oct.30 record high despite lower interest rates and rising physical demand.
Gold for February delivery was last seen down US$28.20 to US$2,681.20 per ounce.
The precious metal rose to a record US$2,800.80 at the end of October amid falling interest rates and safe-haven buying. It looked set to challenge the record this week, rising to US$2,756.70 on Wednesday at the end of a four-day rally, but fell back on profit taking.
"Profit-taking after a record run amid mixed data and a less gold-positive rate outlook for the coming year since the election has kept gold grounded after being on the upswing ... With markets pricing in the December rate cut and China's central bank back to buying gold after a six-month hiatus, we think the counterbalance to some of the gold headwinds is emerging as we head into 2025," Christopher Louney, a commodities strategist at RBC Capital Markets noted.
The dollar fell early, with the ICE dollar index last seen down 0.11 points to 106.85.
Treasury yields rose, with the U.S. two-year note last seen paying 4.213%, up 1.2 basis points, while the yield on the 10-year note was up 2.7 points to 4.362%
Source : MT Newswires
