Khaberni - Gold continued its gains on Tuesday, reaching its highest level in about three weeks, amid rising expectations for the Federal Reserve (U.S. Central Bank) to make another interest rate cut in December, boosting demand for the precious metal which is considered a safe haven.
The spot gold price rose 0.4% to $4131.83 per ounce, the highest level since October 24, while U.S. future contracts for December delivery increased by 0.4% to $4138.70 per ounce.
Last week's data showed that the U.S. economy lost jobs in October with declines in government and retail employment.
A survey on Friday indicated that U.S. consumer confidence dropped to the lowest level in three and a half years in early November, amid fears from the consequences of the longest government shutdown in U.S. history.
The CME Group's FedWatch tool now indicates a 64% chance that the U.S. central bank will reduce interest rates by 25 basis points next month.
Federal Reserve board member Steven Miren said on Monday that a 50 basis point cut would be appropriate in December, noting the fall in inflation and a rise in unemployment rates.
Gold, which does not yield interest, typically benefits from a low-interest rate environment and economic uncertainties.
The U.S. Senate approved a resolution on Monday that would end the longest government shutdown in U.S. history, ending weeks of deadlock that disrupted food assistance for millions of citizens, left hundreds of thousands of government employees without paychecks, and disrupted air travel.
