The gold prices rose on Tuesday for the third session due to the weakness of the dollar and the performance of the Treasury bondin a thin trading session, with traders considering an early start in 2024 for the cuts interest rates in United States.
Spot gold gained 0.3% to $2,058 an ounce by 1510 GMT, close to a more than two-week high of $2,070 in the previous session. Gold futures in the United States advanced 0.1% to US$2,070.
Trade was light the day after Christmaswith several markets closed for holidays, and volumes are expected to remain weak during this shorter week.
“We may see speculators move to the long side, thinking that metals markets should see more bullish action in the first quarter,” said Jim Wyckoff, senior analyst at Kitco Metals.
COMEX gold speculators increased their net long position by 20,365 contracts, to 131,749, in the week to December 19, data on Friday showed.
“Likely less restrictive monetary policies in 2024 will mean better trade demand for precious metals”Wyckoff said, adding that a resurgence in inflation or further economic weakness in China, the largest consumer of bullion, could dampen his bullish outlook.
The operators estimated a probability of 85% that the Federal Reserve cut rates in March, according to CME FedWatch tool.
The dollar index held near five-month lows, while the yield on the benchmark US 10-year bond also fell.
Lower interest rates increase the attractiveness of non-yielding bullion and weaken the US currency, making gold priced in dollars more attractive to those who hold other currencies.
In other precious metals, spot silver rose 0.2% to $24 an ounce; platinum gained 0.5%, to US$976; and palladium lost 0.9%, to US$ 1,192.
Source: Gestion
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