By Daksh Grover
(Reuters) – Gold prices were little changed on Tuesday as market participants awaited the minutes of the latest Federal Reserve policy meeting and economic data for insights on the U.S. interest rate path.
Spot gold was flat at $2,639.45 per ounce by 0530 GMT.
U.S. gold futures lost 0.2% to $2,661.80.
Gold has lost some momentum due to the rising dollar and bond yields, but downside risks may be limited by global conflicts that favour safe-haven assets, said Tim Waterer, chief market analyst at KCM Trade. [USD/] [US/]
Hezbollah fired rockets at Israel’s third-largest city, Haifa, while Israel appeared ready to expand its offensive into Lebanon, marking one year since the Hamas attack that ignited the Gaza war.
Bullion is considered a safe investment during times of political uncertainty.
Investors are focused on the minutes of the Fed’s latest policy meeting, due on Wednesday, followed by the U.S. Consumer Price Index on Thursday and the Producer Price Index data on Friday. Several Fed officials are also lined up to speak throughout the week.
“Looking ahead, if we see any upside surprises in the U.S. CPI numbers this week, this could further boost the dollar and pressure gold,” Waterer added.
According to the CME FedWatch tool, markets are no longer pricing in a 50-basis-point reduction at the Fed’s November meeting after last week’s strong jobs report. They now see an 87% chance for a 25-bp cut.
Meanwhile, St. Louis Fed President Alberto Musalem expressed support for more rate cuts, emphasizing that the economy’s performance will guide policy.
Spot silver lost nearly 1% to 31.40 per ounce. Platinum was down 0.7% to $964.95 and palladium fell 2.3% to $1,001.
Elsewhere, China is “fully confident” of achieving its full-year economic and social development targets, with some funds from 2025’s budget being brought forward to support projects, chairman of the country’s economic planner said Tuesday.
(Reporting by Ashitha Shivaprasad and Daksh Grover in Bengaluru; Editing by Subhranshu Sahu and Varun H K)
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