• Gold prices fell on Tuesday, pressured by a firmer dollar but worries over geopolitical tensions in the Middle East and on the Korean peninsula kept further losses in check.
Spot gold was down 0.4 percent at $1,289.20 an ounce, as of 0706 GMT, while U.S. gold futures for December delivery slipped 0.9percent to $1,291.70 per ounce.
• The dollar edged up against its peers on Tuesday, supported by a rise in Treasury yields following a report that U.S. President Donald Trump was favouring a policy hawk as the next head of the Federal Reserve.
Trump will meet with Fed Chair Janet Yellen on Thursday as part of his search for a new candidate for her position, a source familiar with the planned meeting said.
• The Fed will probably need to raise interest rates in December and then three of four times “over the course of next year”, assuming the U.S. unemployment rate continues to fall and inflation rises, Boston Fed President Eric Rosengren said.
• “On the bearish side, a resilient dollar and rising interest rates (and stocks) are all impacting gold negatively, while the fragile geopolitical mosaic is offering an element of support,” INTL FCStone analyst Edward Meir said in a note.
• Spot gold may drop to $1,281 per ounce, as it failed to break resistance at $1,305, said Reuters technicals analyst Wang Tao.
In other precious metals, silver fell 0.6 percent to $17.08 an ounce.
• Platinum was unchanged at $928.60 an ounce while palladium edged 0.3 percent higher to $975.50, after hitting its best since February 2001 in the previous session.
Reference: Reuters
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