Gold prices ticked higher on Monday (Nov 25), nearing a three-week high, supported by a weaker US dollar and safe-haven demand amid rising geopolitical tensions, as investors awaited more data to gauge the US Federal Reserve’s policy outlook.
Spot gold rose 0.2 per cent to US$2,719.19 per ounce as at 0014 GMT and was set for its sixth consecutive session of gains.
US gold futures edged 0.3 per cent higher to US$2,721.10.
The US dollar index dipped 0.5 per cent, boosting gold’s appeal for holders of other currencies. The benchmark 10-year Treasury yields also declined.
Hezbollah fired heavy rockets at Israel on Sunday, following an Israeli airstrike that killed at least 29 in Beirut. There were reports of damage near Tel Aviv.
Meanwhile, in Russia two Ukrainian missiles and 27 drones were destroyed over the Kursk region, the governor of the region bordering Ukraine said.
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Bullion tends to shine during periods of geopolitical tension, economic risks and in low interest rate environment.
Markets currently estimate a 51 per cent chance of a 25-basis-points Fed rate cut in December, according to the CME Group’s FedWatch Tool.
Data on Friday showed that US consumer sentiment ticked up for a fourth straight month in November, led by a big upswing in sentiment among Republicans following Donald Trump’s victory.
Key events this week include the Fed’s November FOMC meeting minutes, GDP data (first revision) and core PCE figures, all of which could provide further cues into the rate outlook.
Gold premiums in India dipped last week as rising local prices cooled demand, while bullion interest in China and other Asian markets stayed muted.
Spot silver gained 0.2 per cent to US$31.39 per ounce, platinum rose 0.34 per cent to US$966.88 and palladium added 0.8 per cent to US$1,017.28. REUTERS
