Gold Prices Edge Higher but Stay Within Sight of 2-Week Lows

Investing.com – Gold prices edged higher on Tuesday, but stayed within sight of the prior session’s two-week lows as markets continued to grapple with uncertainty over who will become the next Federal Reserve chief and how that will influence the outlook for interest rates.

President Donald Trump told reporters on Monday he is to deciding who should chair the Federal Reserve after interviewing five candidates for the position.

These include current Fed Chair Janet Yellen, whose term expires in February, as well as Fed Governor Jerome Powell, Stanford University economist John Taylor, Trump’s chief economic advisor Gary Cohn, and former Fed Governor Kevin Warsh.

The held near a two-week high against the other major currencies, while remained supported near their recent peaks, dampening the appeal of bullion.

Comex tacked on $2.30, or around 0.2%, to $1,283.26 a troy ounce by 2:35AM ET (0635GMT) after touching its worst level since Oct. 6 at $1,273.60 in the last session.

The yellow metal recovered from an early decline to eke out a small gain Monday as stocks lost some steam after a run to another round of all-time highs.

Interest rate futures are pricing in of a December Fed rate hike according to Investing.com’s Fed Rate Monitor Tool. The U.S. central bank has already raised rates twice this year.

Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.

Elsewhere on the Comex, inched up 6.5 cents, or 0.4%, to $17.14 a troy ounce. Among other precious metals, added 0.2% to $929.25, while rose 0.8% to $960.65 an ounce.

Meanwhile, rallied 3.7 cents, or 1.2%, to $3.221 a pound. It hit its best level since Aug. 2014 at $3.239 earlier, boosted by expectations of strong economic growth in China, the world’s top user of the red metal.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.