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Gold prices fell on Wednesday. Spot gold was down 0.2 per cent at $4,116.65 per ounce, after hitting its highest since October 23 on Tuesday. U.S. gold futures for December delivery edged 0.1 per cent higher to $4,121.70 per ounce. US dollar index edged 0.1 per cent higher against its rivals and was set to a snap a five-session losing streak, making gold less attractive for other currency holders.
Gold rate was pulled down by a slight rebound in the dollar and profit-booking after the precious metal rose to a near three-week high a day earlier on expectations of more interest rate cuts by the Federal Reserve, Reuters reported.
"The dip in dollar has suited gold and silver, which have both been posting gains this week," KCM Trade Chief Market Analyst Tim Waterer said.
"It appears that 'normal service has resumed' for gold, with the precious metal trading back above $4,100 while eyeing off targets further north should U.S. macro data continue to be supportive for additional monetary policy easing," Waterer said.
The U.S. Senate passed a deal on Monday to restore federal funding after a record-long shutdown that has disrupted food benefits for millions, left hundreds of thousands of federal workers unpaid, snarled air traffic, and delayed the release of government economic data.
Members of the U.S. House of Representatives were headed back to Washington for a vote that could bring the shutdown to a close.
Traders are pricing in a roughly 68% probability that the U.S. central bank will cut rates by 25 basis points next month, up from 64 per cent in the previous session, according to CME Group's FedWatch tool.
Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.
Fed Governor Stephen Miran said on Monday a 50-bps rate cut would be appropriate for December, noting that inflation is falling while the unemployment rate is drifting higher.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.41 per cent to 1,046.36 metric tons on Tuesday from 1,042.06 tons on Monday.
Spot silver rose 0.5 per cent to $51.46 per ounce, platinum eased 0.3 per cent to $1,580 and palladium dropped 0.7 per cent to $1,434.25.
Q1. How is gold rate?
A1. Spot gold was down 0.2 per cent at $4,116.65 per ounce. U.S. gold futures for December delivery edged 0.1 per cent higher to $4,121.70 per ounce.
Q2. How will gold behave if U.S Fed cuts interest rate?
A2. Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.
Gold rate was pulled down by a slight rebound in the dollar and profit-booking after the precious metal rose to a near three-week high a day earlier on expectations of more interest rate cuts by the Federal Reserve, Reuters reported.
"The dip in dollar has suited gold and silver, which have both been posting gains this week," KCM Trade Chief Market Analyst Tim Waterer said.
Gold Rate Prediction
"It appears that 'normal service has resumed' for gold, with the precious metal trading back above $4,100 while eyeing off targets further north should U.S. macro data continue to be supportive for additional monetary policy easing," Waterer said.
The U.S. Senate passed a deal on Monday to restore federal funding after a record-long shutdown that has disrupted food benefits for millions, left hundreds of thousands of federal workers unpaid, snarled air traffic, and delayed the release of government economic data.
Members of the U.S. House of Representatives were headed back to Washington for a vote that could bring the shutdown to a close.
Traders are pricing in a roughly 68% probability that the U.S. central bank will cut rates by 25 basis points next month, up from 64 per cent in the previous session, according to CME Group's FedWatch tool.
Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.
Fed Governor Stephen Miran said on Monday a 50-bps rate cut would be appropriate for December, noting that inflation is falling while the unemployment rate is drifting higher.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.41 per cent to 1,046.36 metric tons on Tuesday from 1,042.06 tons on Monday.
Spot silver rose 0.5 per cent to $51.46 per ounce, platinum eased 0.3 per cent to $1,580 and palladium dropped 0.7 per cent to $1,434.25.
FAQs
Q1. How is gold rate?
A1. Spot gold was down 0.2 per cent at $4,116.65 per ounce. U.S. gold futures for December delivery edged 0.1 per cent higher to $4,121.70 per ounce.
Q2. How will gold behave if U.S Fed cuts interest rate?
A2. Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.
