Gold cuts early losses on weaker dollar - 1 Nov 2016

Commodity Intraday Tips

Gold prices inched up on Tuesday as the dollar edged lower, with investors awaiting cues from a series of upcoming central bank policy meetings and US economic data. Of the various central bank policy meetings due this week, the Federal Open Market Committee meeting due Tuesday and Wednesday will be closely monitored for clues on the timing of a possible interest rate hike.

October US non-farm payrolls data is due Friday. Spot gold was up 0.13 percent at USD 1,278.99 per ounce by 0733 GMT, while US gold futures for December delivery rose 0.52 percent to USD 1,279.70.

Spot gold may break resistance at USD 1,280 per ounce and rise more to the next resistance at USD 1,293, as suggested by its wave pattern and Fibonacci ratio analysis, according to Reuters technical analyst Wang Tao.

Markets were pricing in around a 78 percent chance the Fed will raise rates in December, but just a 6 percent chance of a hike this week, according to the CME Group's FedWatch Tool.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

The dollar index, which measures the greenback against a basket of major currencies, inched lower by about 0.1 percent at 98.332.

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