Gold ends down on dollar, US yield strength; Fed cues awaited
Investing.com-- Gold prices fell Tuesday as the U.S. currency and bond yields remained firm before a string of Federal Reserve speakers this week.
While the yellow metal marked a strong run-up over the past two weeks, it has struggled to make headway in recent sessions, especially as the dollar and yields remained resilient despite signs of cooling U.S. economic activity.
Expectations that the Fed will keep rates higher for longer have kept investor appetite for gold limited, with recent labor and inflation indicators showing that the central bank still needs to keep policy restrictive in the near-term.
Gold futures’ most-active December contract on New York’s Comex settled down $14.50, or 0.7%, at $1,952.60 an ounce.
Spot gold was down $11.20, or 0.6%, to $1,927.15 an ounce by 15:30 ET (19:30 GMT).
Markets are now focused squarely on a slew of Fed speakers this week, who are expected to offer more cues on monetary policy before an interest rate decision later this month.
Dallas Fed President Lorie Logan is set to speak on Wednesday, followed by Chicago Fed President Austan Goolsbee on Thursday.
Fed open market committee members John Williams and Michelle Bowman are also set to speak on Thursday.
While a string of weak economic readings pushed up hopes that the Fed has limited room to keep raising interest rates, the central bank is still expected to keep rates higher for longer, given recent signs of sticky inflation and steady labor market activity.
Higher rates bode poorly for gold prices, given that they push up the opportunity cost of holding the yellow metal.
The prospect of a soft landing for the U.S. economy this year has also dented the yellow metals’ safe haven appeal, although concerns over a Chinese and
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