Gold recovered some of its losses on Tuesday, climbing again above USD 4,000 per ounce as the dollar weakened and expectations grew that the U.S. Federal Reserve may lower interest rates. This came despite some downward pressure from signs of easing trade tensions between the United States and China.
Spot gold increased by 0.7% to USD 4,009.39 per ounce, after dropping more than 3% on Monday to its lowest level since October 10. U.S. gold futures for December delivery rose 0.1% to USD 4,022.10 per ounce.
A Reuters survey showed that the gold rally is expected to extend into next year, with the average annual price forecast to exceed USD 4,000 per ounce for the first time, driven by economic and geopolitical instability that continues to enhance the metal’s appeal as a safe-haven asset.
