Gold prices hold near 5-month low

Gold price Hedge funds cut bullish bets by most on record

Gold prices hold near 5-month low

"The path of least resistance is down on the FOMC meeting", Graves said of the metal's response to outgoing Fed Chair Janet Yellen's last meeting in charge. The WSJ Dollar Index, which tracks the US currency against a basket of 16 others, was up 0.1% Tuesday, paring earlier losses after data was released showing a gauge of USA business prices rose in November, pointing to emerging inflation pressure in the economy.

The Fed has increased rates twice in 2017 and is still expected to push through three more hikes next year.

In other metals trading, ticked up 5.7 cents, or 0.4%, to $15.72 a troy ounce, after hitting the lowest since mid-July in the prior session. Some analysts have said they expect them to rise after the Fed meeting.

Mumbai: Gold prices recovered by Rs 40 per 10 grams at the bullion market here on Monday, driven by a firm trend overseas amid fresh buying by local jewellers.

"If the Fed comes out of the gate with more hawkish views on the economy and sees inflation improving, it could impact the dollar index".

Gold price Hedge funds cut bullish bets by most on record
Gold prices hold near 5-month low

The Jones victory could be bullish for gold and bearish for the dollar, a Hong Kong-based trader said, adding that the recent dollar strength could yield some profit taking, in turn helping gold.

Meanwhile, investors also took note of a special Senate election in Alabama, which.

On the technical side, fibonacci support was at around $1,240 and a close below that level could trigger further falls, said Saxo Bank's Hansen.

Platinum was up 0.3 percent at $887.40 an ounce, while palladium was 0.1 percent lower at $1,008.90 an ounce.The platinum discount to palladium widened to around $120 last week, the steepest since April 2001.

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