Gold ticks lower but holds near key $2,700 level

Reuters

Gold ticks lower but holds near key $2,700 level

3:23 sáng giờ GMT, 8 Tháng 11 2024

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US Federal Reserve cuts interest rate by 25 bps

Bullion down more than 1% for the week

Long-term uptrend stays strong for gold - analysts

Add details, comments and update prices

By Daksh Grover

Nov 8 (Reuters) -Gold prices eased on Friday but hovered aroundthe $2,700 level, as traders assessed the impact of Donald Trump's presidency and its implications for the U.S. interest rate outlook.

Spot gold XAU= fell 0.4% to $2,697.19 per ounce as of 0251 GMT and was headed for a weekly loss. However, prices rose more than 1% in the last session, bouncing from over a 3-week low.

U.S. gold futures GCv1 were flat at $2,704.50, while the U.S. dollarindex =USD was setfor a slight weekly gain after Trump's election victory.

A stronger dollar makes bullion more expensive for overseas buyers. USD/

Gold prices are marginally pressureddue to the market's uncertainty over U.S. political and policy developments, said Kyle Rodda, financial market analyst at Capital.com.

The long-term uptrend stays strong for gold, supported by expected rate cuts and ongoing geopolitical tensions, Rodda added.

Bullion is considered a hedge during uncertainties and tends to thrive in a low-interest-rate environment.

At the end of its two-day policy meeting on Thursday, the FederalReserve cut interestrates by 25 basis points as anticipated, but indicated a careful and measured approach to any future rate cuts.

Traders now see a 71% chance of another 25-bps cut in December, in what could be the third reduction this year.

In the long term, it still looks bullish for gold but in the short-term, if prices drop to $2,643, the next levels of support will be $2,620-$2,520, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

Meanwhile, global physically-backed gold exchange-traded funds (ETFs) saw inflows for the sixth straight month in October, the World Gold Council (WGC) said.

Elsewhere, Beijing will wrapup a key five-day meeting later in the day, which investors are closely watching for more detailson stimulus measures.

Spot silver XAG= fell 0.8% to $31.75 per ounce, platinum XPT= fell 0.2% to $994.80 and palladium XPD= shed 0.21% to $1,022.36.

Reporting by Daksh Grover and Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Sumana Nandy

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