Gold prices remained steady on Tuesday after jumping to a record high in the previous session on escalating geopolitical tensions in the Middle East and uncertainties surrounding the U.S. presidential election.
FUNDAMENTALS
* Spot gold rose 0.1% at $2,723.06 per ounce, as of 00:20 GMT. U.S. gold futures were 0.1% lower to $2,737.1.
* Putting pressure on zero-yield bullion, the benchmark 10-year Treasury yields surged to a 12-week peak while the dollar rose to its highest level since Aug. 2. [US/ USD/]
* Gold hit its all-time high of $2,740.37 on Monday and has gained about 32% so far this year, helped by global uncertainties and a looser monetary policy environment. Gold is a preferred investment during periods of lower rates and at times of uncertainty.
* Israel carried out several strikes in Beirut’s southern suburbs on Monday, including one near the capital’s main government hospital. Elsewhere, the battle for the U.S. presidency is heating up, with about two weeks remaining for the election. * Federal Reserve Bank of Dallas President Lorie Logan said on Monday she sees more rate cuts ahead for the central bank and suggested she sees no reasons why the Fed can’t also press forward with shrinking its balance sheet. * Traders are pricing in a 87% chance of a U.S. Federal Reserve rate cut in November, according to the CME Fedwatch tool.
* Citi Research raised its three-month forecast for gold prices to $2,800/oz, citing possible further U.S. labor market deterioration, interest rate cuts by the Federal Reserve and physical and ETF buying.
* Spot silver rose 0.2% to $33.86 per ounce, after hitting its highest level since late 2012 at $34.28.
* Platinum rose 0.3% at $1,006.26 and palladium gained 0.4% to $1,055.75.
No major data/events expected on Tuesday, Oct. 22.