Nov 4 (Reuters) – Gold traded below the $4,000-per-ounce mark again on Tuesday as the dollar remained resilient at over three-month highs, while reduced chances of another U.S. interest rate cut in December and easing U.S.-China trade tensions blunted bullion’s demand.
Spot gold was down 0.2% at $3,992.23 per ounce, as of 0343 GMT. U.S. gold futures for December delivery lost 0.3% to $4,001.40 per ounce.
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The dollar was steady, hovering near a three-month high as a divided U.S. Federal Reserve spurred traders to rein in interest rate cut wagers.
“The stronger dollar is acting as a thorn in the side of gold, with traders recalculating the likelihood of another rate cut arriving by year-end,” said KCM Trade Chief Market Analyst Tim Waterer.
Market participants now see a 65% chance of another rate cut in December, down from over 90% prior to Powell’s remarks, as per CME’s FedWatch Tool.
Non-yielding gold thrives in a low-interest-rate environment and during times of economic uncertainty.
Investors now eagerly await the release of ADP U.S. employment data, due on Wednesday and ISM PMIs this week for cues on rate cuts.
“If we see another bleak looking ADP print, that may give gold a foothold to start tracking higher again,” Waterer added.
Bullion, which has gained 53% so far this year, has fallen more than 8% from its record high reached on October 20.
Elsewhere, spot silver edged 0.1% higher to $48.12 per ounce, platinum rose 0.1% to $1,566.60 and palladium fell 1% to $1,430.31.
Reporting by Ishaan Arora; Editing by Rashmi Aich and Sherry Jacob-Phillips
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