Gold falls in Asia on stronger greenback
On Tuesday, gold sank in Asia with the dual combination of a stronger greenback and surging expectations of a Fed rate lift by the end of 2016, keeping market sentiment downbeat.
In New York, December delivery gold futures dipped 0.07%, trading at $1,262.85 per troy ounce. Meanwhile, December delivery silver futures lost 0.18%, trading at $17.572 a troy ounce. As for December delivery copper futures, they were intact, trading at $2.095 per pound.
Overnight, gold faced selling as hopes ascended for a Fed rate lift by the end of 2016. Market participants currently price a 73.6% likelihood of a rate lift at the Fed's December gathering.
Gold happens to be sensitive enough to moves in American rates, raising the opportunity cost of holding non-yielding assets, including bullion, while spurring the greenback in which it’s priced.
However, prices were still backed by expectations of rising seasonal demand from India as the festival season, when purchasing gold, traditionally considered to be auspicious, gets underway at the end of October.