Metal falls as investors book profits after prices hit a more than one-month high earlier in the day
12 December 2024 - 07:37
byRahul Paswan
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Bengaluru — Gold slipped on Thursday as investors booked profits after prices hit a more than one-month high earlier in the day on the increased expectation of an interest rate cut by the Federal Reserve next week.
Spot gold shed 0.5% to $2,704.41/oz by 257 GMT. It hit the highest since Nov. 6 earlier in the session. US gold futures fell 0.5% to $2,744.60.
“It’s just profit booking because we’ve seen a good rally in gold due to various factors this week, including geopolitical tension, China resuming gold purchases and the inflation number yesterday being in line with expectation,” said Ajay Kedia, director at Kedia Commodities, Mumbai.
“Overall, I think the current scenario remains supportive for gold.”
According to CME’s FedWatch Tool, traders now see a 98.4% chance of a 25 basis point (bp) Fed rate cut on December 18, compared with an about 86% odds before the US inflation report.
US consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Fed from cutting rates for a third time next week against the backdrop of a cooling labour market.
Focus is now on US producer price index data, due at 1.30pm GMT, for insights into the Fed’s 2025 policy.
Meanwhile, the European Central Bank (ECB) is all but certain to cut rates again on Thursday and signal further easing in 2025.
The bullion is seen as a safe investment during economic and geopolitical turmoil and thrives in a low interest rate environment.
Elsewhere, the UN general assembly overwhelmingly voted on Wednesday to demand an immediate, unconditional and permanent ceasefire between Israel and Palestinian militants Hamas in the Gaza Strip.
Spot silver dropped 0.3% to $31.84/oz, platinum was down 0.2% to $937.55 and palladium lost 0.2% to $979.91.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold loses ground as traders take profits
Metal falls as investors book profits after prices hit a more than one-month high earlier in the day
Bengaluru — Gold slipped on Thursday as investors booked profits after prices hit a more than one-month high earlier in the day on the increased expectation of an interest rate cut by the Federal Reserve next week.
Spot gold shed 0.5% to $2,704.41/oz by 257 GMT. It hit the highest since Nov. 6 earlier in the session. US gold futures fell 0.5% to $2,744.60.
“It’s just profit booking because we’ve seen a good rally in gold due to various factors this week, including geopolitical tension, China resuming gold purchases and the inflation number yesterday being in line with expectation,” said Ajay Kedia, director at Kedia Commodities, Mumbai.
“Overall, I think the current scenario remains supportive for gold.”
According to CME’s FedWatch Tool, traders now see a 98.4% chance of a 25 basis point (bp) Fed rate cut on December 18, compared with an about 86% odds before the US inflation report.
US consumer prices increased by the most in seven months in November, but that is unlikely to discourage the Fed from cutting rates for a third time next week against the backdrop of a cooling labour market.
Focus is now on US producer price index data, due at 1.30pm GMT, for insights into the Fed’s 2025 policy.
Meanwhile, the European Central Bank (ECB) is all but certain to cut rates again on Thursday and signal further easing in 2025.
The bullion is seen as a safe investment during economic and geopolitical turmoil and thrives in a low interest rate environment.
Elsewhere, the UN general assembly overwhelmingly voted on Wednesday to demand an immediate, unconditional and permanent ceasefire between Israel and Palestinian militants Hamas in the Gaza Strip.
Spot silver dropped 0.3% to $31.84/oz, platinum was down 0.2% to $937.55 and palladium lost 0.2% to $979.91.
Reuters
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