The US dollar rebounded on Tuesday, pressurizing precious metals, with Spot gold slipping 0.4 percent to $1,289.20 per ounce.
The dollar index was at a high of 93.475 up from Friday’s 92.749.
Silver fell 0.6 percent to $17.08 an ounce.
US gold futures for December delivery fell 0.9 percent to $1,291.70 an ounce.
Platinum was steady at $928.60 an ounce.
Palladium gained 0.3 percent to $975.50.
Who Will Be Nominated the Next Fed Chair?
The rise in Treasury yields supported the dollar following US President Trump’s favourable report after meeting a likely candidate for the next Federal Reserve Chair. According to reports, John Taylor a Stanford University economist made a favourable impression at the White House. The other candidates are Fed Chair Janet Yellen, Fed governor Jerome Powell and the Chief economic adviser to Trump, Gary Cohn. According to sources, existing Fed Chair, whose term expires next February is expected to be interviewed on Thursday at the White House.
According to an analyst at OCBC, Barnabas Gan, worries over geopolitical tensions is clouding the gold prices, a crucial and unquantifiable factor.
In a statement from Pyongyang, which warned that a nuclear war might break out imminently, US John J. Sullivan, Deputy Secretary of State said that the US will not rule out the possibility of direct talks with North Korea.
The Kurdish referendum on independence which could balance the power in the oil industry. Renewed fighting by Iraqi government forces who captured Kirkuk, a major Kurdish held oil city on Monday is also weighing in on the markets.
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