Gold prices traded higher early Wednesday as investors waited to hear from Federal Reserve Chairman Jerome Powell.
Price action
- December gold futures GCZ22, +0.69% rose $9.10, or 0.6%, to $1,658 per ounce on Comex.
- Silver futures due in December SIZ22, +0.85% advanced 9 cents, or 0.4%, to $19.76 per ounce.
- Palladium futures expiring in December PAZ22, +1.04% climbed $21.50, or 1.1%, to $1,898 per ounce, while platinum futures due in January PLF23, +1.22% gained $8.20, or 0.9%, to $958.80 per ounce.
- Copper futures HGZ22, +0.24% due in December were flat at $3.48 per pound.
What’s happening
Gold booked a seventh straight monthly loss earlier this week, marking the latest chapter in a difficult year that has seen the price of the yellow metal soften as the U.S. dollar and Treasury yields have risen, dimming some of its luster.
Precious metals traders are preparing to scrutinize Powell’s comments Wednesday afternoon. The chair is set to speak after the close of the Federal Open Market Committee’s two-day November policy meeting.
Fed funds futures markets already expect another 75 basis point rate hike or the fourth “jumbo” rise in the the benchmark interest rate in a row from the Fed at the meeting.
Gold prices could swing higher if Powell hints at a 50 basis point rate hike in December, said Rupert Rowling, market analyst for Kinesis Money.
“If Powell outlines a more dovish trajectory going forward, that will give gold some relief after months of downward pressure from the series of large rate hikes implemented by the Fed,” he said.
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