Gold Gains In Asia As Fed Speakers, Treasury Secretary Remarks Awaited

Investing.com – Gold gained in Asia on Tuesday with sentiment on the rate outlook awaiting further insights from a slew of Fed speakers as well as the US treasury secretary.

for December delivery on the Comex division of the New York Mercantile Exchange redged up 0.09% to $1, 295.67 a troy ounce.

Later on Tuesday is the Jerome Powell Fed Chair confirmation hearing starting at 10am ET before the Senate Banking Committee.

As well, New York Fed President William Dudley will speak at 9:15am ET at the New York Fed. Philadelphia Fed President Patrick Harker will speak at 10:15am ET at the Philadelphia Fed. Treasury Secretary Steven Mnuchin is slated to make remarks at 3:45pm at the New York Fed.

Overnight, gold prices rose to a more-than-one month high on Monday buoyed by an uptick in safe-haven demand amid reports suggesting North Korea was preparing to launch a missile as part of its army’s winter training regime.

A Japanese diplomat warned on Monday that radio signals detected from the North Korea indicated another North Korean missile test was close, fuelling demand for safe-haven gold.

“There is a possibility of missiles launches in the next few days,” a Japanese government official said on Monday, according to Japan’s Kyodo news agency. The potential of fresh missile launches from the Kim Jong-un led nation is believed to be part of the North Korea army’s winter training regime.

Also supporting the uptick in gold prices was ongoing flattening in the yield curve as the yield spread between long-term and short-term bonds continued to narrow. A flattering yield curve usually indicates uncertainty over long-term economic growth.

Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

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