GOLD prices fell on Tuesday (Nov 26) to their lowest in more than a week, weighed down by a stronger US dollar and reports of a potential Israel-Hezbollah ceasefire that dampened safe-haven demand.
Spot gold was down 0.2 per cent at US$2,621.06 per ounce, as at 0023 GMT, after hitting its lowest since Nov 18 earlier in the session.
Bullion fell more than 3 per cent in the previous session on the ceasefire reports and US President-elect Donald Trump’s nomination of Scott Bessent as the Treasury secretary.
US gold futures edged 0.1 per cent higher to US$2,621.10.
On the geopolitical front, US President Joe Biden and French President Emmanuel Macron are expected to announce a ceasefire in Lebanon between armed group Hezbollah and Israel imminently, four senior Lebanese sources said.
Gold is traditionally seen as a safe investment during times of economic and geopolitical uncertainty such as conventional or trade wars.
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The US dollar rose against major peers after Trump threatened Canada and Mexico with a 25 per cent tariff on all imports into the United States. A stronger US dollar reduces gold’s appeal for holders of other currencies.
Markets currently estimate a 55.9 per cent chance of a 25-basis-point US Federal Reserve rate cut in December, according to the CME Group’s FedWatch Tool.
Meanwhile, Federal Reserve Bank of Minneapolis president Neel Kashkari, typically on the hawkish end of the US central bank’s policy spectrum, said he is open to cutting rates again next month.
Traders will closely monitor US consumer confidence data and minutes of the Fed’s November meeting due later in the day, along with GDP (first revision) and core PCE figures set for release later this week.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.16 per cent to 879.41 tonnes on Monday.
Spot silver fell 0.3 per cent to US$30.19 per ounce, platinum shed 0.5 per cent to US$934.00 and palladium was down 0.2 per cent to US$971.07. REUTERS
