Mumbai, 03 Dec (Commoditiescontrol): Gold prices saw a modest rise on Tuesday, buoyed by expectations of a potential U.S. interest rate cut and ongoing geopolitical uncertainties.
Spot gold increased by 0.1% to $2,642.42 per ounce, recovering from a 1% drop in the previous session. U.S. gold futures gained 0.3%, settling at $2,665.30 per ounce.
Federal Reserve officials hinted at further monetary easing, with Governor Christopher Waller expressing support for another rate cut this month, provided inflation continues its downward trajectory towards the 2% target. Similarly, New York Fed President John Williams emphasized the importance of moving towards a neutral policy stance. Market analysts now estimate a 75% probability of a rate cut at the Federal Reserve’s December 17-18 meeting. Lower interest rates often enhance gold’s appeal as a non-yielding asset.
The week’s focus has shifted to critical U.S. economic indicators, including job openings data, the ADP employment report, and the nonfarm payrolls release, which could influence the Federal Reserve's decisions. Preliminary data showed moderate contraction in U.S. manufacturing for November, accompanied by growth in new orders for the first time in eight months and lower input costs for factories.
Geopolitical developments added further support to gold prices. Tensions escalated in the Middle East as Israeli airstrikes targeted Lebanese towns, resulting in casualties and intensifying cross-border hostilities with Hezbollah. Gold remains a preferred safe-haven investment during such periods of economic or geopolitical instability.
In the broader precious metals market, spot silver edged up by 0.3% to $30.60 per ounce, platinum remained steady at $946.60, and palladium advanced 0.5% to $985.86.
With both economic and geopolitical factors in play, the precious metals market is expected to remain dynamic as investors seek stability amidst uncertainty.
(By Commoditiescontrol Bureau: 09820130172)
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