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SummaryGold hit record high of $4,381.21/oz on MondayGold prices are poised to rise further, analyst saysFocus on US inflation data due on FridaySilver down nearly 4% Oct 21 (Reuters) - Gold prices fell over 1% on Tuesday as investors booked profits after the metal hit another record high in the previous session, driven by expectations of U.S. interest rate cuts and strong safe-haven demand. Spot gold was down 1.6% at $4,287.89 per ounce, as of 0803 GMT, having hit an all-time high of $4,381.21 on Monday. U.S. gold futures for December delivery fell 1.3% to $4,303.60 per ounce. The dollar index (.DXY), opens new tab rose 0.2%, making bullion more expensive for holders of other currencies. Advertisement · Scroll to continue "Gold prices are still yet to go much higher, but the speed is being a bit aggressive and as a result of that, we will get pullbacks each time we hit those fresh highs," said Nitesh Shah, commodities strategist at WisdomTree. A combination of geopolitical and economic uncertainty, sustained central bank buying, strong investment demand and expected U.S. interest rate cuts has pushed gold 63% higher this year. Investors' focus is now on the U.S. consumer price index (CPI) data, due on Friday. The data is expected to show a 3.1% year-over-year increase for September, reinforcing market expectations for the Federal Reserve to lower interest rates by 25 basis points at its meeting next week.FEDWATCH Advertisement · Scroll to continue Gold, a non-yielding asset, tends to benefit from a low-rate environment. Asian equities gained on Tuesday, buoyed by hopes of easing trade tensions between the U.S. and China, while Japan's Nikkei advanced as Sanae Takaichi prepared to become the nation's next prime minister, pressuring the yen. "There are still many market participants that did not participate in (gold's) rally and are looking to get exposure if there is a price setback, limiting the downside for now, in my view," said UBS analyst Giovanni Staunovo. Elsewhere, spot silver XAG= dropped nearly 4% to $50.39 per ounce, platinum XPT= shed 3.9% to $1,574.05 and palladium XPD= lost 4.5% to $1,428.25. Increased silver flows from the U.S. and China to London's spot market have eased liquidity constraints in the world's largest over-the-counter precious metals hub, according to traders and analysts. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2110987175 About ConnatixV2110987175 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Anmol Choubey and Ishaan Arora in Bengaluru; Editing by Emelia Sithole-Matarise Purchase Licensing Rights Anmol ChoubeyThomson ReutersAnmol reports on commodities markets, focusing on metals, energy, and agriculture. Beyond journalism, he has a keen interest in geopolitics and enjoys exploring global power dynamics through geopolitical strategy books and political thriller movies.EmailXInstagramLinkedin
