Gold steadies as firm dollar offsets rate cut bets
Gold prices held steady on Tuesday as a firmer dollar countered support from U.S. rate cut bets, while market participants awaited President Trump's announcement on new Federal Reserve appointments.
Spot gold was up 0.1% at $3,376.80 per ounce, by 0947 a.m. ET (1347 GMT) after rising to its highest level since July 24 on Monday. U.S. gold futures also rose 0.1% at $3,430.
The dollar was up 0.2%, making greenback-priced gold more expensive for overseas buyers.
A stronger dollar is pressuring gold right now, but expectations that the Fed will start cutting rates in September remain very supportive for gold, said Bob Haberkorn, senior market strategist at RJO Futures.
Markets are currently pricing in two rate cuts by year-end, beginning in September after Friday's unexpectedly weak June hiring data.
Gold is used as a safe store of value during political and financial uncertainty, and thrives in a low-interest-rate environment as it yields no interest.
Meanwhile, Trump said he would announce decisions soon on a short-term replacement for Federal Reserve Governor Adriana Kugler, who announced her resignation on Friday, as well as his pick for the next Fed chair.
Data showed that the U.S. trade deficit narrowed in June on a sharp drop in consumer goods imports, the latest evidence of the imprint on global commerce Trump is making with sweeping tariffs on imported goods.
Investors now await Thursday's U.S. jobs data for more clues into the Fed's potential rate path.
Spot silver rose 0.4% to $37.53 per ounce, reaching its highest level since July 30.
Source: Reuters
