PRECIOUS METALS - Gold prices steady after another big interest-rate cut expectations fade
Istanbul, October 4 (Hibya) - Gold prices held steady on Thursday as safe-haven demand from escalating tensions in the Middle East offset pressure from a stronger dollar after investors toned down expectations of another big interest-rate cut from the U.S. Federal Reserve.
Spot gold was flat at $2,657.89 per ounce after hitting a record high of $2,685.42 last week. U.S. gold futures settled 0.4 percent higher at $2,679.2. Spot silver rose 0.8 percent to $32.10, platinum dropped 0.9 percent to $993.14, and palladium slipped 1.8 percent to $997.29.
Israel’s military urged residents of over 20 southern Lebanese towns to evacuate immediately amid an ongoing incursion following its worst losses in a year of fighting Hezbollah.
Bullion is considered a safe investment during times of political and financial uncertainty due to its ability to store value and its ability to thrive in a low-rate environment.
Richmond Fed President Thomas Barkin said the U.S. central bank’s fight to return inflation to its 2 percent target may take longer than expected, limiting the extent to which interest rates can be cut.
Traders watered down their bets for a 50-basis-point rate cut in November to 33 percent from 49 percent last week. The market focus is now on Friday’s non-farm payrolls report.
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