Spot gold was little changed at $2,627.85 per ounce, having touched a record high of $2,639.95 earlier in the session
Gold prices steadied on Tuesday after reaching a record high on expectations for a further easing of U.S. monetary policy and as tensions in the Middle East rise.
Spot gold was little changed at $2,627.85 per ounce as of 0822 GMT, having touched a record high of $2,639.95 earlier in the session.
U.S. gold futures were steady at $2,652.40.
We are starting to see gold a little bit overbought in the short term. And maybe we are seeing a bit of sort of cutting of long positioning after such a big rally, according to Kyle Rodda, financial market analyst at Capital.com.
Gold’s 14-day relative strength index (RSI) was around 72. An RSI above 70 indicates a commodity is overbought.
Bullion has scaled multiple record highs in 2024 and has increased more than 27% so far this year, with gains attributed to central bank easing and geopolitical issues.
Fed policymakers on Monday said their large half-percentage-point rate cut last week was meant to try to sustain what they see as an emerging and healthy balance in the economy.
Chicago Fed Bank President Austan Goolsbee said there are “lots of cuts” to come over the next 12 months, while Minneapolis Fed President Neel Kashkari noted that the actual path would depend on incoming data.
Fed futures traders have priced in 75 bps in rate cuts by the end of 2024, shows the CME FedWatch Tool.
Zero-yield bullion tends to be a preferred investment in a low interest rate environment and during geopolitical turmoil.
Among other metals, spot silver gained 0.61% to $30.86 per ounce, platinum was 1% higher at $965.20 and palladium jumped almost 2% to $1,061.86.
