BENGALURU – Gold ticked up on Tuesday but hovered near a one-month low, while investors awaited US economic data and comments from Federal Reserve officials for further clarity on the interest rate trajectory.
Spot gold rose 0.2 percent at $2,624.17 per ounce, after hitting its lowest since Oct. 10 on Monday. US gold futures rose 0.5 percent to $2,630.10.
The US dollar held near a four-month high as investors continued to pile into trades seen as benefiting from the incoming Donald Trump administration. A stronger dollar makes bullion less attractive for other currency holders.
“Gold has succumbed to the purple patch of the US dollar in the aftermath of the election. The President-elect’s policies appear to be a boon for the dollar and potentially from an inflationary standpoint, it could slow down the Fed’s rate-cutting trajectory in 2025,” said Tim Waterer, chief market analyst at KCM Trade.
Gold is considered a hedge against inflation, but higher interest rates reduce the appeal of holding the non-yielding asset.
