Gold edges lower from near three-week peak on profit-taking

[BENGALURU] Gold edged lower in early Asian trade on Monday (Dec 1) from a near three-week peak, as investors booked profits amid increasing bets of a US interest rate cut later this month, while silver hit a record high.

Spot gold was down 0.2 per cent at US$4,221.68 per ounce, as at 9.09 am, after hitting its highest level since Nov 13 on Friday. US gold futures for December delivery were up 0.2 per cent at US$4,261.60 per ounce.

Silver climbed 2.2 per cent to a fresh high of US$57.59 per ounce.

US rate futures are pricing in an 87 per cent chance of a rate cut in December, according to the CME’s FedWatch tool.

Recent dovish remarks from US Federal Reserve governor Christopher Waller and New York Fed president John Williams, combined with softer economic data following the recent government shutdown, have strengthened expectations that the central bank will cut rates this month.

Meanwhile, White House economic adviser Kevin Hassett, who has emerged as a frontrunner for the post of Fed Chair, said on Sunday that he would be happy to serve as the next chairman of the US central bank if chosen by President Donald Trump.

Like Trump, Hassett believes interest rates should be lower.

Non-yielding gold tends to perform well in low-interest-rate environments.

Investors are looking ahead to US manufacturing and private payroll data due later this week to gauge chances of a rate cut at the central bank’s Dec 10 meeting.

SEE ALSO

Gold steadies at near two-week high as investors weigh Fed rate-cut bets

The US dollar held near its lowest level since Nov 17, making greenback-priced gold less expensive for other currency holders.

Elsewhere, platinum lost 0.2 per cent to US$1,669.15, while palladium gained 2.3 per cent to US$1,483.51. REUTERS