Spot gold was flat at $2,639.45 per ounce, while U.S. gold futures shed 0.2% to $2,661.80
Gold prices were little changed on Tuesday as market participants awaited the minutes of the latest Fed policy meeting and economic data for insights on the U.S. interest rate path.
Spot gold was flat at $2,639.45 per ounce by 0530 GMT.
U.S. gold futures shed 0.2% to $2,661.80.
Gold has lost some momentum due to the rising dollar and bond yields, but downside risks may be limited by global conflicts that favour safe-haven assets, according to Tim Waterer, chief market analyst at KCM Trade.
Bullion is considered a safe investment during times of political uncertainty.
Investors are focused on the minutes of the Federal Reserve’s latest policy meeting, due on Wednesday, followed by the U.S. Consumer Price Index (CPI) on Thursday and the Producer Price Index (PPI) data on Friday. Several Fed officials are also lined up to speak throughout the week.
Looking ahead, if we see any upside surprises in the U.S. CPI figures this week, this could further boost the dollar and pressure gold, Waterer said.
As per the CME FedWatch tool, markets are no longer pricing in a 50 bp cut at the Federal Reserve’s November meeting after last week’s strong jobs report. They now see an 87% probability for a 25 basis point cut.
Meanwhile, St. Louis Fed President Alberto Musalem expressed support for more rate cuts, emphasising that the economy’s performance will guide policy.
Spot silver skidded almost 1% to 31.40 per ounce. Platinum was down 0.7% to $964.95 and palladium skidded 2.3% to $1,001.
Elsewhere, China is “fully confident” of achieving its full-year economic and social development targets, with some funds from 2025’s budget being brought forward to support projects, chairman of the country’s economic planner said Tuesday.
