He dollar global moves away from its recent highs on Tuesday, as investors awaited comments from agency officials. United States Federal Reserve (Fed) to get clarity on the interest rate cut policy.
The dollar retreated as investors began to take profits following last week’s spectacular rally, which saw it hit a one-year high. The fall in the value of the US currency makes the gold less expensive for buyers who own other currencies, so metal prices rose for the second consecutive session and hit a one-week high.
It is expected that several officials of the Federal Reserve talk this week, which could offer more insight into rate cut paths. Traders currently see a 61% chance of a 25 basis point cut in December, Reuters reported.
Gold goes up
In the morning, the gold spot rose 0.9% to $2,634.78 an ounce, its highest level since Nov. 11. Prices gained 2% on Monday, recovering from the two-month low hit on Thursday. Gold futures in USA They added 0.9% to $2,638.70.
“Sales have lost steam and that is attracting those potential buyers who were waiting for the market to stabilize to re-enter,” said Ole Hansen, head of commodities strategy at Saxo Bank. “The dollar has stopped rising and that was probably the necessary trigger,” he added.
Another factor that boosted gold was the escalation of attacks in the war between Russia and Ukraine. On Sunday, Russia launched its largest airstrike against Ukraine in almost three months. Gold, which pays no interest, performs well in times of geopolitical uncertainty and low interest rate environments.
Among other metals, silver Spot rose 0.8% to $31.4, hitting a one-week high earlier in the session. Platinum fell 0.2% to $965.41, while palladium it held steady at $1,003.43 after rising more than 5% on Monday.
“The long-term outlook for palladium remains negative, in our view, as the metal is projected to be oversupplied due to declining demand from the automotive catalyst sector,” UBS analysts said in a statement. a note
Source: Ambito
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