Gold prices eased slightly in the global market on Tuesday (2 December) after reaching a six-week high in the previous session. The increase in US Treasury bond yields and profit-taking weighed on the metal, while investors maintained a cautious stance ahead of key US economic releases expected this week, which will guide the Federal Reserve’s interest rate policy.
Spot gold declined by 0.3 per cent to 4,218.71 dollars per ounce on Tuesday. US gold futures for December delivery also fell by 0.6 per cent to 4,250.70 dollars. At the same time, yields on US 10-year Treasury bonds hovered near a two-week peak, reducing investor appetite for non-yielding gold.
Tim Waterer, Chief Market Analyst at KCM Trade, said: “Gold is performing weakly today, but the fundamental picture remains intact. Expected US rate cuts could support gold in the future.” He added that the market was cautious as Federal Reserve Chair Jerome Powell is unlikely to make highly dovish remarks. The core PCE price index — the Fed’s preferred inflation gauge — is expected to remain stable when released on Friday. Powell also avoided commenting on economic conditions or policy during his speech at Stanford University on Monday.
This week’s focus includes Wednesday’s November ADP employment data and Friday’s delayed September PCE figures. According to CME’s FedWatch Tool, market participants estimate an 88 per cent likelihood of a rate cut in December.
SPDR Gold Trust reported that its gold reserves rose by 0.44 per cent on Monday to 1,050.01 metric tonnes.
Other precious metals also saw declines. Silver fell by 1.3 per cent to 57.24 dollars per ounce, platinum decreased by 0.9 per cent to 1,643.10 dollars, and palladium dropped by 0.4 per cent to 1,419.50 dollars per ounce.
In the domestic market, updated gold prices were announced yesterday, Monday (1 December). A bhori (11.664 grams) of 22-carat gold is now priced at 212,145 taka. The price for 21-carat gold is 202,499 taka per bhori, 18-carat is 173,572 taka, and traditional-method gold costs 144,424 taka per bhori.
Source: Reuters
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