PT Rifan Financindo Berjangka – Gold Steady After Cease-Fire Deal as Traders Look to US Data
Gold was steady as a cease-fire deal in the Middle East sapped haven demand, and investors waited for US economic data that will provide clues on the Federal Reserve’s rate path.
Bullion traded near $2,630 an ounce as Israel and Lebanese militant group Hezbollah agreed to a 60-day suspension of hostilities. Anticipation of an agreement had helped push gold down by more than 3% on Monday.
Gold is still up more than 25% this year on easing US monetary policy and heightened geopolitical risks, but has been hit by a stronger dollar this month in the wake of Donald Trump’s election victory. However, it didn’t react significantly on Tuesday to the president-elect’s threat of 25% import tariffs on Canada and Mexico, which buoyed the greenback.
Minutes of the Fed’s November meeting and personal consumption expenditure data — the monetary authority’s preferred gauge of inflation — are among the most significant reports due this week.
Spot gold dipped 0.1% to $2,630.57 an ounce as of 8:17 a.m. in Singapore. The Bloomberg Dollar Spot Index declined 0.1%. Silver, platinum and palladium were all steady.
Source: Bloomberg
Gold steady as safe-haven demand faces mixed geopolitical signals
Gold prices were caught in a tug-of-war on Tuesday, dipping to a week’s low as safe-haven demand softened as Israel agreed to a ceasefire deal with Lebanon, while concern over Ukraine and U.S. President-elect Donald Trump’s tariff plans limited declines.
Spot gold was steady at $2,626.83 per ounce as of 02:07 p.m. ET (1906 GMT), erasing some of the earlier losses when prices hit their lowest since Nov. 18. U.S. gold futures settled 0.1% higher at $2,621.30.
This follows Monday’s dramatic $100 plunge, when gold retreated from a three-week high. The sell-off was fueled by Israel and Hezbollah ceasefire optimism and further pressured by Trump’s nomination of Scott Bessent as Treasury Secretary, which tempered demand for gold as a safe haven.
Israel’s security cabinet has agreed a ceasefire deal with Lebanon, Channel 12 reported on Tuesday.
Concern over the wider fallout from Russia’s invasion of Ukraine continues to remain very high, however, Grant said adding that gold will likely experience choppy consolidation in the near term, ranging between $2,575-$2,750. PT Rifan Financindo Berjangka.
Source: Reuters