Gold inches up on support from the Fed
The hope that the US Federal Reserve may pause its rate hike cycle sooner than expected lifts the metal
Bengaluru — Gold prices edged higher on Tuesday, supported by hopes that the US Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session’s rally. Spot gold was up 0.2% at $1,246.62/oz, as of 4.30am GMT. It touched its highest in nearly five months at $1,250.55 in the prior session. US gold futures were 0.2% higher at $1,251.40/oz. “Weakening US dollar outlook and very dovish pivots from the Fed, a lot of uncertainty boxed around equity markets.… It can still turn quite negative, so this is why gold remains a good hedge against a lot of market risks,” said Stephen Innes, Asia-Pacific trading head at Oanda in Singapore. “I am very bullish on gold in this setup into 2019.” The dollar index, a measure of the greenback’s strength versus a group of six major peers, edged lower after rallying in the previous session as a vote on Brexit deal was postponed. Investors are now focused on the US Federal Reserve’s December 18-19 po...
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