Bengaluru — Gold prices moved higher during Asian hours
on Tuesday as investors snapped up bars and coins in a wave of physical
buying after the precious metal slipped to its lowest level in nearly
six months in the previous session.
Spot gold was up 0.4% at $1224.76/oz at 2.56am GMT. The metal had slipped to its lowest since June 3 at $1,211.08/oz on Monday.
US gold futures were up 0.25% at $1,224.60.
The metal has fallen nearly 9% from a November 9 high of $1,337.40/oz since US president-elect Donald Trump’s election win, as investors bet fiscal and trade policies under his administration would stoke inflation.
"Given such a sharp drop, the fall would be cushioned by physical demand pick-ups," said NAB analyst Vyanne Lai.
"It seems like Trump’s increased spending will increase inflation expectations," Lai said. "The [market] sentiments are being compounded by the very high probability of the US Fed raising interest rates in December."
Markets are now expecting a hike in US interest rates in December. Dallas Fed president Robert Kaplan on Monday suggested the Federal Reserve was on track to raise US interest rates soon. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding nonyielding assets such as bullion, while boosting the dollar, in which it is priced. The dollar index was down 0.2% at 99.920, but remained within reach of its December 2015 peak of 100.51.
Spot gold could test a resistance at $1,235/oz, as it had found a support zone of $1,204/oz-$1,210/oz, said Reuters technical analyst Wang Tao.
Among other precious metals, silver was up 0.9% at $17.02/oz. The metal touched its lowest since June 8 at $16.61/oz in its previous session.
Palladium was down 0.2% at $696.80/oz. The metal hit a high of $702.50 earlier in the session, its highest since October 4.
Platinum was up 0.65% at $936.75/oz, bouncing off more than eight-month lows of $917.50 touched in the previous session.
Reuters
Spot gold was up 0.4% at $1224.76/oz at 2.56am GMT. The metal had slipped to its lowest since June 3 at $1,211.08/oz on Monday.
US gold futures were up 0.25% at $1,224.60.
The metal has fallen nearly 9% from a November 9 high of $1,337.40/oz since US president-elect Donald Trump’s election win, as investors bet fiscal and trade policies under his administration would stoke inflation.
"Given such a sharp drop, the fall would be cushioned by physical demand pick-ups," said NAB analyst Vyanne Lai.
"It seems like Trump’s increased spending will increase inflation expectations," Lai said. "The [market] sentiments are being compounded by the very high probability of the US Fed raising interest rates in December."
Markets are now expecting a hike in US interest rates in December. Dallas Fed president Robert Kaplan on Monday suggested the Federal Reserve was on track to raise US interest rates soon. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding nonyielding assets such as bullion, while boosting the dollar, in which it is priced. The dollar index was down 0.2% at 99.920, but remained within reach of its December 2015 peak of 100.51.
Spot gold could test a resistance at $1,235/oz, as it had found a support zone of $1,204/oz-$1,210/oz, said Reuters technical analyst Wang Tao.
Among other precious metals, silver was up 0.9% at $17.02/oz. The metal touched its lowest since June 8 at $16.61/oz in its previous session.
Palladium was down 0.2% at $696.80/oz. The metal hit a high of $702.50 earlier in the session, its highest since October 4.
Platinum was up 0.65% at $936.75/oz, bouncing off more than eight-month lows of $917.50 touched in the previous session.
Reuters
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