Gold steadied near the highest level since May, with recent strength fueled by a slump in Treasury yields as traders loaded up on bets that the Federal Reserve will start cutting interest rates next year.
Bond yields extended declines as investors pushed wagers on a dovish pivot deeper into next year, with weak economic data bolstering expectations that the central bank is done with rate hikes. Lower yields are typically positive for non-interest bearing bullion.
Hedge funds boosted their bullish bets on gold to a four-month high, the latest CFTC data on futures and options show, further underscoring bets on a rate-hike pause.
Spot gold was little changed at $2,015.38 an ounce at 7:35 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped. Silver was steady, while platinum and palladium rose.
Source : Bloomberg
