Bengaluru — Gold prices edged up on Tuesday, underpinned by healthy demand, but an increasing probability of a US interest rate hike and a firm US dollar kept prices range-bound. Spot gold was up 0.1% at $1,265.82 an ounce at 4.31am GMT, while US gold futures were up 0.2% at $1,266.10/oz. Chicago Fed President, Charles Evans, said on Monday the US central bank will raise policy rate three more times by the end of next year, if inflation expectations and the labour market continue to improve. The Markit survey of US manufacturing climbed to a one-year top of 53.2, while business activity in Europe expanded at the fastest pace this year so far in October. However, the underlying demand is strong for the metal, said ANZ analyst Daniel Hynes. "The broad backdrop for gold is still quite positive, with rising inflation expectations, quantitative easing in Europe and Japan, negative yields, sovereign bonds," Hynes said. "But certainly impetus for another round of kick higher is lacking at ...
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