London — Gold prices were steady on Thursday as investors weighed the impact of an expected rise US interest rates against uncertainty about the direction of US fiscal policy. Gold is highly exposed to interest rates and returns on other assets, as rising rates lift the opportunity cost of holding non-yielding bullion. Spot gold was flat at $1,278.10/oz at 11am GMT, after touching a three-and-a-half-week high of $1,289.09 on Wednesday. US gold futures for December delivery were also barely changed at $1,278. Gold has traded in a tight range of about $24 in November. Tom Kendall, ICBC Standard Bank precious metals strategist, said gold was stuck in a range with the prospect of a rise in US interest rates exerting pressure, while uncertainty about the direction of US fiscal policy offered support. "The two are kind of pushing and pulling on global yields and on the gold price," he said. Traders see a 96.7% chance the US Federal Reserve will raise rates at its December 13 meeting, CME ...
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