Gold Futures Pare Early Gains, Settle Roughly Flat

Gold futures pared early gains and settled just slightly higher on Tuesday as recent hawkish comments from Fed policymakers continued to weigh on the commodity.

Gold prices climbed higher earlier in the day, riding on dollar's weakness and a drop in U.S. Treasury yields, but gave up gains as the day progressed.

The dollar index dropped to 107.25, down more than 0.5% from the previous close, as markets await the minutes of the Federal Reserve's latest policy meeting for clues about the central bank's likely move on interest rates in the coming months.

Gold futures for December ended up $0.30 at $1,739.90 an ounce, coming off a high of $1,738.30 an ounce they touched earlier in the session.

Silver futures for December ended higher by $0.177 at $21.049 an ounce, while Copper futures for December settled at $3.6145 per pound, gaining $0.0430.

Federal Reserve Bank of San Francisco President Mary Daly said on Monday it is premature and nothing is off the table regarding the size of the rate hike at the next policy meeting in December.

Cleveland Fed Bank President Loretta Mester said she doesn't see any pause in the rate hike cycle yet, while Atlanta Federal Reserve President Raphael Bostic said he favors slowing the pace of interest rate increases, with no more than 1 percentage point more of hikes.

In its Economic Outlook published today, the Organization for Economic Co-operation and Development (OECD) said the global economy faces significant challenges as a severe energy crisis pushed up inflation and lowered economic growth all around the globe, necessitating policy actions to combat inflation and targeted fiscal support to vulnerable section.

The OECD forecast global growth to ease to 2.2% next year from 3.1% in 2022. In 2024, growth is projected to be 2.7%, helped by initial steps to ease policy interest rates.

The agency expects U.S. real GDP to grow at a pace of 0.5% in 2023 and 1% in 2024 as continued monetary policy tightening provide a headwind to near-term growth.

The OECD expects China's economic growth to slow to 3.3% in 2022 and rebound to 4.6% in 2023 and 4.1% in 2024.

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