GOLD prices held steady on Tuesday (Aug 27), lingering near record highs, as safe-haven demand from rising geopolitical tensions in the Middle East and increasing bets on a US Federal Reserve interest rate cut in September provided support.
Spot gold was flat at US$2,515.83 per ounce by 0027 GMT. Bullion hit a record high of US$2,531.60 on Aug 20.
US gold futures fell 0.2 per cent to US$2,551.20.
Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.
Gold is historically reputed for its stability as a favoured hedge against geopolitical and economic risks.
Meanwhile, San Francisco Federal Reserve president Mary Daly on Monday said that “the time is upon us” to cut interest rates, likely starting with a quarter-percentage point reduction in borrowing costs.
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Traders have fully priced in a Fed easing for next month, with a 70 per cent chance of a 25-basis-point cut and about 30 per cent chance of a bigger 50-bp reduction, according to the CME FedWatch tool.
A low interest rate environment tends to boost non-yielding bullion’s appeal.
Data from the Commerce Department on Monday showed that new orders for key US capital goods unexpectedly fell in July, with June’s figures revised lower, indicating a slowdown in business equipment spending into the third quarter.
Gold demand in top consumers in India and China is expected to improve in the next few months, industry officials said.
Spot silver edged 0.2 per cent lower to US$29.85 per ounce, platinum fell 0.3 per cent to US$959.24 and palladium was flat at US$958.50. REUTERS
