By Daksh Grover
BENGALURU- Gold was flat on Tuesday as investors await fresh insights on the Federal Reserve’s stance on US interest rate reductions for further direction on bullion prices.
Spot gold held its ground at $2,646.64 per ounce. Prices hit a record high of $2,685.42 last month.
US gold futures edged 0.1 percent lower to $2,663.10.
“Gold prices have been surprisingly resilient, refusing to succumb to a stronger US dollar and higher Treasury yields,” IG market strategist Yeap Jun Rong said.
US elections could increase gold demand as a hedge against uncertainty, while expected Fed rate cuts, likely in 25-basis-point increments, may push prices to a record high, targeting $2,800 by the year-end, he added.
US dollar climbed to over a two-month peak in the previous session, making bullion more expensive for other currency holders. The benchmark 10-year yield also ticked higher.
Fed Governor Christopher Waller called for “more caution” on interest rate cuts ahead. While, Fed Bank of Minneapolis President Neel Kashkari said more rate reductions likely lie ahead for the US central bank as the 2 percent inflation target looms into sight. – Reuters