Gold prices rise to one-week high
Date
11/20/2024 1:09:11 AM
(MENAFN) Gold prices rose to a one-week high on Tuesday, buoyed by a weaker U.S. dollar, as investors looked ahead to potential comments from Federal Reserve officials for hints on the future direction of interest rates in the U.S.
Spot gold climbed 0.2 percent to $2,618.11 per ounce by 05:14 GMT, marking its highest level since November 12. U.S. gold futures also saw a 0.3 percent rise, reaching $2,622.00.
The decline in the U.S. dollar followed a round of profit-taking after its strong rally last week, making gold more affordable for holders of other currencies.
Kyle Rodda, a financial markets analyst at Capital.com, pointed out that recent market movements were largely driven by technical factors, particularly the overbought condition of the dollar. He also noted that any remarks from Fed officials this week could influence expectations for the December interest rate meeting.
At present, traders estimate a 58.9 percent chance of a 25 basis point rate cut in December, compared to a 41.1 percent likelihood of rates remaining unchanged.
On the geopolitical front, Russia's intensified attacks on Ukraine, including damage to Ukraine's power grid, weighed on market sentiment. Amid geopolitical tensions and low interest rates, gold is viewed as a safe-haven asset.
Other precious metals also saw gains, with spot silver rising 0.2 percent to $31.22 per ounce, marking a one-week high. Platinum settled at $967.70, while palladium held steady at $1,003.90, following a more than 5 percent rise on Monday.
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