Globally, spot gold slipped 0.2% to $3,681.23 per ounce as of 0256 GMT, after touching an all-time high of $3,702.95 on Tuesday. U.S. gold futures for December delivery also eased 0.2% to $3,718.90 per ounce.
“Gold’s ascent to $3,700 was aided by the decline in the USD and by bets that the Fed may signal that follow-up rate cuts are likely to arrive before year-end,” said Tim Waterer, Chief Market Analyst at KCM Trade. He added that profit-taking around the $3,700 level weighed on prices, though a dovish stance from the Fed could push gold higher again.
The dollar index edged up 0.1% on Wednesday after falling to a more than two-month low in the previous session. U.S. Treasury yields also hovered near a five-month low, keeping traders focused on the Fed’s next move. Lower interest rates typically reduce the opportunity cost of holding non-yielding bullion.Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted that both gold and silver saw profit booking at higher levels in the previous session. “Strength in the rupee limited domestic gains despite supportive global factors. Gold has support at $3,651–$3,630 and resistance at $3,700–$3,720, while in INR terms, support is seen at ₹1,09,540–₹1,09,240 and resistance at ₹1,10,550–₹1,11,000,” he said.
Adding to investor sentiment, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.32% rise in holdings to 979.95 metric tons on Tuesday.
Market watchers now await remarks from Fed Chair Jerome Powell, which will provide cues on the pace of further policy easing.
–With Reuters inputs
