MTECHTIPS;-Gold Prices Edge Higher as Dollar Falls Ahead of Fed

MTECHTIPS;-Gold Prices Edge Higher as Dollar Falls Ahead of Fed Minutes

MTECHTIPS-Gold prices rose on Tuesday after the dollar fell amid weakness in long-term yields ahead of the release of the Federal Reserve’s October meeting meetings slated for Wednesday. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $6.58, or 0.52%, to $1282.01 a troy ounce. Long-term treasury yields remained under pressure, weighing on the dollar, while boosting demand for gold as traders awaited the minutes of the Federal Reserve October meeting for clues on future monetary policy action. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.12% to 93.91. The prospect of a December rate hike appears to be fully priced in, according to fed rate monitor tool. Gold is sensitive to moves lower in the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency, which increases demand for the precious metal. Also adding to positive sentiment on the precious metal was the return of safe haven demand amid renewed U.S-North Korea tensions after President Donald Trump placed North Korea back on a list of state sponsors of terrorism on Monday. “Today the United States is designating North Korea as a state sponsor of terrorism. Should have happened a long time ago. Should have happened years ago,” Trump said
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