Gold prices dipped on Tuesday, shedding nearly 2% from the previous session as cautious investors returned to riskier assets and awaited further signals regarding the Federal Reserve's policy stance.
Spot gold contracts slipped 0.07% to $1,859.62 per ounce at 16:43 local time, after hitting a one-week high earlier in the session.
Meanwhile, U.S. gold futures edged up 0.5% to $1,873.60 per ounce.
On Monday, spot gold contracts surged 1.6%, marking their most significant one-day gain in five months. This jump was driven by heightened demand for safe-haven investments amid escalating conflicts between Israel and the Hamas Palestinian group.
Bart Melek, Head of Commodity Strategy at TD Securities, noted that profit-taking and increased risk appetite among investors have exerted downward pressure on gold prices, despite the Israel-Hamas conflict helping to limit the declines. Gold typically serves as a safe-haven investment during times of global uncertainty.
Key indices on Wall Street opened in the green, but a sense of caution still prevailed as tensions escalated in the Middle East.
The market's focus is on the Federal Reserve's September monetary policy meeting minutes, set to be released on Wednesday, and U.S. Consumer Price Index (CPI) data due on Thursday.
Melek further commented, "If the CPI report comes in hotter than expected, especially core CPI, it will be a negative signal for gold as it shows the Fed may have to keep interest rates higher for longer." Given that gold does not offer interest, it tends to lose its appeal as interest rates rise.
On Monday, top Fed officials suggested that surging long-term U.S. Treasury yields might prevent the Fed from raising interest rates in the near term.
Spot silver contracts dropped 0.32% to $21.82 per ounce, while platinum declined by 0.55% to $881.31 per ounce, but palladium rose by 2.69% to $1,170.35 per ounce.
Spot gold contracts slipped 0.07% to $1,859.62 per ounce at 16:43 local time, after hitting a one-week high earlier in the session.
Meanwhile, U.S. gold futures edged up 0.5% to $1,873.60 per ounce.
On Monday, spot gold contracts surged 1.6%, marking their most significant one-day gain in five months. This jump was driven by heightened demand for safe-haven investments amid escalating conflicts between Israel and the Hamas Palestinian group.
Bart Melek, Head of Commodity Strategy at TD Securities, noted that profit-taking and increased risk appetite among investors have exerted downward pressure on gold prices, despite the Israel-Hamas conflict helping to limit the declines. Gold typically serves as a safe-haven investment during times of global uncertainty.
Key indices on Wall Street opened in the green, but a sense of caution still prevailed as tensions escalated in the Middle East.
The market's focus is on the Federal Reserve's September monetary policy meeting minutes, set to be released on Wednesday, and U.S. Consumer Price Index (CPI) data due on Thursday.
Melek further commented, "If the CPI report comes in hotter than expected, especially core CPI, it will be a negative signal for gold as it shows the Fed may have to keep interest rates higher for longer." Given that gold does not offer interest, it tends to lose its appeal as interest rates rise.
On Monday, top Fed officials suggested that surging long-term U.S. Treasury yields might prevent the Fed from raising interest rates in the near term.
Spot silver contracts dropped 0.32% to $21.82 per ounce, while platinum declined by 0.55% to $881.31 per ounce, but palladium rose by 2.69% to $1,170.35 per ounce.
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Comment:
The 4 o'clock frame is trending well!!
Comment:
The analysis is trending!!
