MTS Help Center

Gold prices climbed for a second day on Tuesday, buoyed by an easing U.S. dollar and physical buying in Asia.

"Gold prices have factored in the December (U.S. rate hike) move. Now it is a matter of bargain-hunting," said Spencer Campbell, general manager with Kaloti Precious Metals in Singapore. "We are seeing a lot of activity in Southeast Asia. The drop in prices and inverse pricing against the local currency are driving the buying."

"We still expect gold to struggle against a host of bearish elements that remain arrayed against it, including a stronger dollar, soaring equity markets and the prospect of further rate hikes that could follow the widely-expected increase slated for next month," INTL FCStone analyst Edward Meir said in a note.

"Gold kept its head above water, with technical-based buying supporting the market. However, with the market increasing bets on a December rate hike in the U.S., this buying is unlikely to persist in the short term," ANZ analysts said in a note."

Goldman Sachs on Monday lowered its three- and six-month gold price forecasts to $1,200 per troy ounce and said downside risks remain from potential physical ETF liquidation.

Reference: Reuters