Gold was steady on Tuesday, October 25, in London but expectations about US interest-rate rises are capping any significant moves higher, market participants said.
The spot gold price was recently quoted at $1,268.10/1,268.50 per oz, up $4 on the previous close. Trade has again ranged narrowly from $1,262.15 to $1,269.10 so far.
With the market pricing in a probability of around 70% of a rate rise in December and broad support at $1,250-1,260 per oz, “it is difficult to see the yellow metal pulling too far away from these levels over the short term”, MKS noted.
Stronger US PMI data has raised the chances of a Fed rate rise, according to Fed Fund futures. This has helped lift the dollar index to a recent high of 98.85 – it was recently slightly lower at 98.70.
Last night, St Louis Fed president James Bullard said that December is the “most likely” date for the next rate increase although he also said low interest rates will probably remain “the norm over the next two to three years”.
In the other precious metals, the spot silver price was up 14 cents at $17.705/17.730 per oz. Platinum climbed $10 to $944/949 and palladium at $632/640 was up $5.
(Editing by Mark Shaw)
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Source: Bullion Desk News
