Gold hits near 2-week peak, investors focus on Fed appointments
Gold prices climbed to a near two-week high on Tuesday, supported by growing expectations of U.S. interest rate cuts, while investors awaited President Donald Trump's decision on Federal Reserve appointments.
Spot gold was up 0.2% at $3,380.20 per ounce by 01:55 p.m. ET (1755 GMT), after hitting its highest level since July 24 earlier. U.S. gold futures settled 0.2% higher at $3,434.7.
The dollar edged lower, making greenback-priced gold more affordable for foreign currency holders.
Markets are currently pricing in two rate cuts by year-end, beginning in September, after Friday's unexpectedly weak June hiring data, following which Trump fired the commissioner of the U.S. Bureau of Labor Statistics (BLS).
"The market is still reeling from last week's data-heavy week alongside the Trump administration's decision to replace the head of the BLS," said Daniel Ghali, commodity strategist at TD Securities.
"Both of these things play into gold's strength, and certainly corroborate our view that the U.S. dollar is partly losing its store of value function."
Gold is used as a safe store of value during 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.
Spot silver rose 1.2% to $37.85 per ounce, its highest level since July 30.
"I'm more bullish on silver than gold right now. I think silver could break above $40, and if it does, the next target would likely be around $42," said Bob Haberkorn, senior market strategist at RJO Futures.
Platinum lost 1% to $1,316.35 and palladium shed 2.1% to $1,181.21.
South Africa-based miner Sibanye-Stillwater has asked the United States to consider a tariff on Russian palladium imports to support the long-term viability of U.S. supplies.
Source : Reuters
