Gold prices edged down on Tuesday as investors awaited additional insight into the Federal Reserve‘s next rate cut move and the U.S. dollar surged.
In the UAE, gold rates dropped with 24-carat gold now priced at AED320 and 22-carat gold at AED296.50. In addition, 21-carat gold was priced at AED287 and 18-carat gold at AED246.
Globally, spot gold dipped 0.26 percent to $2,642.5 as of 5:10 GMT while U.S. gold futures fell 0.27 percent to $2,658.40.
The U.S. dollar index rose to over a two-month high in the previous session, reaching 103.31 today and making bullion less attractive to other currency holders.
Bullion resilient despite headwinds
Gold prices have held their ground above the $2,600 level despite several factors impacting their ascent, including a stronger dollar and higher treasury yields. Several factors including the U.S. election and ongoing Middle East tensions may also further support gold prices as the Fed gauges the possible rate cut easing cycle for this year.
Fed governor Christopher Waller called for more caution regarding the upcoming interest rate cuts while Fed Bank of Minneapolis president Neel Kashkari said the Fed will likely cut rates further as the U.S. inches closer to the 2 percent inflation target.
Traders are currently pricing an 88.2 percent chance of a 25-basis-point cut in November and an 11.8 percent chance of the Fed keeping rates steady, according to the CME FedWatch tool.
Investors will await the release of the U.S. retail sales report, industrial production data, and weekly jobless claims due later in the week.
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Other precious metals
As gold prices declined, spot silver fell 0.16 percent to $31.12 per ounce while platinum dipped 0.40 percent to $988.95, and palladium declined 1.10 percent to $1,018.51.
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