Gold steadies as firm dollar counters bets on peak US rates

SINGAPORE, Nov 15 (Reuters): Gold steadied below one-week highs on Wednesday, weighed by a stronger dollar, but expectations that the US Federal Reserve is done with hiking interest rates put a floor under prices.
Spot gold fell 0.1 per cent to $1,960.49 per ounce by 2:20 p.m. ET (1920 GMT), after touching a one-week peak earlier. US gold futures settled 0.1 per cent lower at $1,964.30.
Denting bullion's appeal, the dollar index was up 0.4 per cent, while benchmark 10-year US Treasury yields rebounded after a revision of retail sales data showed strong gains in September.
Bullion gained nearly 1 per cent in the previous session after data showed that US consumer prices were unchanged in October. US producer prices fell by the most in three-and-a-half years in October, the latest indication of inflation pressures easing.
"The results from CPI and PPI are positive and it continues to support gold prices with the expectation that inflation will continue to pull back adding to the expectations that the Fed is done raising interest rates," said David Meger, director of metals trading at High Ridge Futures.
The market was certain the US central bank will leave rates unchanged in December, with most traders eyeing rate cuts from May 2024, according to the CME FedWatch tool.
While gold is considered an inflation hedge, rising interest rates dull non-yielding bullion's appeal.
Spot silver rose 1.6 per cent to $23.45 per ounce, after touching its highest since Oct. 20 earlier.
Platinum was up 1.1 per cent at $895.13 and palladium gained 1.5 per cent to $1,032.45. Both metals were eyeing their third straight session of gains.