GOLD prices remained steady on Tuesday (Oct 22) after jumping to a record high in the previous session on escalating geopolitical tensions in the Middle East and uncertainties surrounding the US presidential election.
Spot gold rose 0.1 per cent at US$2,723.06 per ounce, as at 00:20 GMT. US gold futures were 0.1 per cent lower to US$2,737.1.
Putting pressure on zero-yield bullion, the benchmark 10-year Treasury yields surged to a 12-week peak while the US dollar rose to its highest level since Aug 2.
Gold hit its all-time high of US$2,740.37 on Monday and has gained about 32 per cent so far this year, helped by global uncertainties and a looser monetary policy environment. Gold is a preferred investment during periods of lower rates and at times of uncertainty.
Israel carried out several strikes in Beirut’s southern suburbs on Monday, including one near the capital’s main government hospital. Elsewhere, the battle for the US presidency is heating up, with about two weeks remaining for the election.
Federal Reserve Bank of Dallas president Lorie Logan said on Monday she sees more rate cuts ahead for the central bank and suggested she sees no reasons why the Fed cannot also press forward with shrinking its balance sheet.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Traders are pricing in an 87 per cent chance of a US Federal Reserve rate cut in November, according to the CME Fedwatch tool.
Citi Research raised its three-month forecast for gold prices to US$2,800/oz, citing possible further US labour market deterioration, interest rate cuts by the Federal Reserve and physical and ETF buying.
Spot silver rose 0.2 per cent to US$33.86 per ounce, after hitting its highest level since late 2012 at US$34.28.
Platinum rose 0.3 per cent at US$1,006.26 and palladium gained 0.4 per cent to US$1,055.75. REUTERS
