Gold Prices Edge Higher as Dollar Falls Ahead of Fed Minutes

Investing.com – Gold prices rose on Tuesday after the dollar fell amid weakness in long-term yields ahead of the release of the Federal Reserve’s October meeting meetings slated for Wednesday.

for December delivery on the Comex division of the New York Mercantile Exchange rose by $6.58, or 0.52%, to $1282.01 a troy ounce.

Long-term treasury yields remained under pressure, weighing on the dollar, while boosting demand for gold as traders awaited the minutes of the Federal Reserve October meeting for clues on future monetary policy action.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.12% to 93.91.

The prospect of a December rate hike appears to be fully priced in, according to investing.com’s fed rate monitor tool.

Gold is sensitive to moves lower in the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency, which increases demand for the precious metal.

Also adding to positive sentiment on the precious metal was the return of safe haven demand amid renewed U.S-North Korea tensions after President Donald Trump placed North Korea back on a list of state sponsors of terrorism on Monday.

“Today the United States is designating North Korea as a state sponsor of terrorism. Should have happened a long time ago. Should have happened years ago,” Trump said.

According to investing.com’s 100% traders expect the Federal Reserve to raise rates.

In other precious metal trade, rose 0.86 % to $16.99 a troy ounce, while added 1.62% to $938.55.

traded at $3.13, up 1.07% while fell by 0.85% to $3.02.

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.