Gold edged higher Tuesday, recouping some of the ground lost in the previous session as investors scaled back expectations about the pace of future interest-rate increases by the U.S. Federal Reserve.
Gold for February delivery GCG9, -0.01% on Comex rose $1.20, or 0.1%, to $1,250.60 an ounce, while March silver SIH9, +0.55% was up 19.5 cents, or 1.3%, to $14.80 an ounce.
“Gold prices, a barometer of economic and political news, are awaiting [the] Fed meeting Dec. 18-19 on rate hikes, which could have more dovish language and cautious approach to future hikes,” said George Gero, managing director in the senior consulting group at RBC Wealth Management.
“Brexit turmoil now also may be helping gold as a haven as postponing the vote is a sign of more headaches and headlines,” he added in a daily update.
On Tuesday, global currencies were driven by news on the trade front. The U.S. and China have kicked off a new round of trade talks. That helped to lift some risk-sensitive currencies against the U.S. dollar.
But the greenback still traded a bit higher in Tuesday dealings, helping to limit gains in gold. The ICE U.S. Dollar Index DXY, +0.21% a measure of the U.S. currency against a basket of six major rivals, edged up by 0.1% after a strong climb on Monday. Gold priced in dollars often trades inversely with the dollar, as moves in the U.S. unit can influence the attractiveness of those commodities to holders of other currencies.
In other metals trade, January platinum PLF9, +0.26% was up 0.5% to $785.70 an ounce, while March palladium PAH9, +1.86% rose 1.9% to $1,180.30 an ounce—looking to notch another record settlement on tight supplies and expectations for stronger demand.
March copper HGH9, +1.67% gained 1.9% to $2.771 a pound.