NEW YORK: Gold seesawed within a narrow range on Tuesday, restrained by a strong dollar, with geopolitical and upcoming US election uncertainties adding to the volatility as investors eagerly awaited fresh clues on the Federal Reserve’s easing plans.
Spot gold was steady at $2,648.60 per ounce at 9:40 a.m. ET (1340 GMT), off one-week highs hit in the last session. US gold futures remained unchanged at $2,665.40.
“The volatility in the gold market, it’s a part of the seasonal timing due to the upcoming US election,” says Everett Millman from Gainesville Coins, adding that the volatility reflects the uncertainty due to varying geopolitical factors. “A volatile period here is a normal response to kind of consolidating the game, as long as that volatility is not exclusively in the downward direction,” he said, adding that a floor of $2,600 is a key level.
The dollar perched near its highest in more than two months spurred by wagers the Fed will proceed with modest rate cuts in the near term. A strong dollar makes bullion more expensive for other currency holders. Currently traders see about 91% chance of a 25-basis-point cut in November, according to the CME FedWatch tool.
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