BENGALURU: Gold hit a two-week low on Tuesday as a safe-haven rally triggered by Middle East tensions lost steam with the market focus turning to interest rate cues from Federal Reserve officials, while palladium slid to a five-year low.
Spot gold fell 0.6% to $1,965.13 per ounce by 10:11 a.m. ET (1511 GMT), its lowest since late October. US gold futures dropped 0.9% to $1,971.70.
Silver fell 2.2% to $22.53. The dollar gained 0.4%, also driving the retreat across metals. Gold is holding at these levels on expectations the Fed is done raising rates and “the sooner the first rate cut gets pushed in the forecast, the better it is for gold,” said Everett Millman, chief market analyst at Gainesville Coins. Lower interest rates boost the appeal of zero-yield bullion and the focus will be on Chair Jerome Powell’s speech on Wednesday and Thursday, and other Fed officials due to speak this week. “Everything would have to go right economically in order for gold to sell off (in 2024),” Millman added.
Bullion hit a five-month high in October as a result of the Israel-Hamas conflict. But recent declines suggest investors are becoming less concerned about geopolitics, Marios Hadjikyriacos, investment analyst at forex broker XM, said in a note.
Palladium, meanwhile, fell 4.6% to $1,055.67. Earlier in the session, prices fell as much as 5.1% to a five-year low. Platinum eased 1% to $895.85.
Both are used in car engine exhausts to reduce emissions.
Source: Brecorder