Gold edges lower as dollar firms, Fed speakers in focus

GOLD inched lower in early Asian hours on Tuesday (Nov 7) as the US dollar staged a rebound, although bullion prices were stuck in a tight range with investors staying on the sidelines ahead of comments from US Federal Reserve officials including chair Jerome Powell.

Spot gold was down 0.1 per cent at US$1,975.35 per ounce by 0116 GMT and US gold futures fell 0.3 per cent to US$1,982.10.

The US dollar rose 0.1 per cent after hitting a six-week low in the previous session, making gold more expensive for other currency holders. Benchmark 10-year Treasury yields were at 4.6327 per cent.

Investors will be waiting to see if Powell, who is due to speak on Wednesday and Thursday, maintains the more dovish tone he struck after the Fed’s policy meeting last week.

Fed governor Lisa Cook said on Monday she hopes the central bank’s current target interest rate is adequate to return inflation to the Fed’s 2 per cent target.

Meanwhile, Fed Bank of Minneapolis president Neel Kashkari said the US central bank likely has more work ahead of it to control inflation.

Futures see the Fed’s overnight lending rate staying above 5 per cent till next June.

Although gold is seen as a hedge against inflation, higher interest rates dull non-yielding bullion’s appeal.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.5 per cent to 867.57 tonnes on Monday from 863.24 tonnes on Friday.

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Spot silver fell 0.3 per cent to US$22.95 per ounce, platinum eased 0.1 per cent to US$904.34 and palladium slipped 0.3 per cent to US$1,103.16. REUTERS