WASHINGTON (dpa-AFX) - Gold prices traded higher for a second day running on Wednesday to touch a three-week high against the backdrop of persistent geopolitical risks and the disappointment over the lack of details about China's fiscal stimulus.
Spot gold jumped 0.7 percent to $2,681.56 per ounce while U.S. gold futures were up 0.7 percent at $2,698.10.
Lingering Middle East tensions and sliding bond yields helped boost safe-haven demand for bullion and offset pressure from a stronger dollar.
The dollar hovered near two-month peaks versus major peers, driven by rising bets for a second Donald Trump presidency and expectations the Federal Reserve will proceed with modest interest rate cuts.
Markets currently see a 95 percent chance of a 25-bps rate cut from the Fed next month, after an aggressive 50-bps cut in September.
Atlanta Fed's Raphael Bostic on Tuesday said he penciled in just one more interest-rate reduction of 25 basis points this year, while San Francisco Fed's Mary Daly said 'one or two' cuts in 2024 would be 'reasonable'.
On the geopolitical front, Israel said it would consider the 'opinions' of the United States but will ultimately act against an Iranian missile attack according to its own 'national interests'.
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