Gold Prices Hover At 2-Week Highs As Market Sentiment Wanes

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Includes: DGL, DGLD, DGP, DGZ, DZZ, GEUR, GHE, GHS, GLD, GLDI, GLDW, GLL, GTU, GYEN, IAU, OUNZ, PHYS, QGLDX, SGOL, UBG, UGL, UGLD
by: Investing.com

Gold prices were hovering at two-week highs on Tuesday, as a number of geopolitical concerns boosted demand for safe-haven assets, although expectations for an upcoming U.S. rate hike still lent some support to the dollar.

Comex gold futures were up $6.71, or about 0.52%, at $1,291.73 a troy ounce by 08:35 a.m. ET (12:35 GMT), the highest since September 27.

Investors remained cautious following reports last week that North Korea was preparing a long-range missile test.

There were concerns that Pyongyang could mark Tuesday, when it celebrates the founding of its ruling party, with some sort of provocation.

Meanwhile, diplomatic tensions between the U.S. and Turkey persisted following the suspension of visa services between the two countries, while Iran vowed a "crushing" response should Washington deem the Revolutionary Guards a terrorist group.

In Spain, the ruling Spanish Partido Popular warned Catalan leader Carles Puigdemont on Monday that he could be thrown in jail if he followed through with a planned declaration of independence on Tuesday.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.40% at 93.18, pulling away from Friday's 10-week highs of 94.10.

Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.

The greenback had strengthened after Friday's upbeat wage inflation data bolstered expectations that the Fed will hike interest rates in December.

Elsewhere on the Comex, silver futures rallied 1.50% to $17.19 a troy ounce.

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