Gold futures edged back Tuesday, threatening to end a string of gains for bullion after rising for three straight sessions. There were a slew of Federal Reserve speakers Monday and, “on balance, the tone remained largely dovish” as Fed Chairman Jerome Powell and Fed Vice Chairman Richard Clarida both reiterated that rate hikes will not likely come until late 2022 or 2023, analysts at Sevens Report Research wrote in Tuesday’s newsletter.
St. Louis Fed Bank President James Bullard, in an interview with Fox Business Monday, said he expects the central bank to raise interest rates twice in 2022. On the charts, “gold is attempting to breakout through resistance between $1,830 and $1,835, but futures have failed to do so four times since July and until we get a decisive breakout, the gold market will remain trendless,” said analysts at Sevens Report Research. Read: Top Fed officials signal interest-rate increases in 2022 are on the table December gold
declined by $3.50, or 0.2%, at $1,824.50, following a 0.6% gain on Monday, which marked a third straight gain — matching the longest win streak since the period ended Oct. 14, FactSet data show. Silver for December delivery
also fell by 34.2 cents, or 1.4%, at $24.20 an ounce after posting a gain of 1.6% Monday. Despite gold’s retreat Tuesday, gold is seen on a bullish uptrend, particularly as inflation fears climb and the U.S. dollar has been somewhat subdued. Wholesale prices in the U.S. surged again in October, with the producer price index up 0.6% last month, offering little sign that the biggest increase in inflation in decades is going to peter out soon. Naeem Aslam, chief market analyst at AvaTrade, said that “generally speaking, central banks around the world still seem to be accommodative, and in this case, investors are using their liquidity and excess cash to hold the precious metal to hedge against persistent inflation.” Other Comex traded lower Tuesday, with December copper
down 0.9% at $4.358 a pound. January platinum
traded down 0.7% at $1,052.70 an ounce and December palladium
traded at $2,025 an ounce, down 2.5%.