The prices of Gold stayed solid on Wednesday as stronger physical demand for the precious metal, ahead of India’s Diwali festival season, offset a firm US dollar. Demand for bullion is also expected to pick up in view of Dhanteras and Diwali, when gold is traditionally given as a gift.
Spot gold was up about 0.1% at USD 1,275.04 an ounce by 0445 GMT. In the previous session, it hit USD 1276.67, its highest since Oct. 5. US gold futures settled up 0.16% at USD 1,275.7 an ounce.
A Reuters poll showed the Federal Reserve is expected to raise interest rates in December.
Holdings of the Standard & Poor’s depositary receipt (SDPR) Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.34% to 956.83 tonnes on Tuesday from 953.56 tonnes on Monday.
Spot gold may rise towards USD 1,292 per ounce, having cleared a resistance at USD 1,273, as per Reuters analyst.
Silver climbed 0.22% to USD 17.82 an ounce. Platinum slipped 0.23% to USD 961.00 an ounce, while palladium edged up 0.2% to USD 634.20.