Gold Pares Gains as Fedspeak Raises Doubts on Further Rate Cuts

Group 1 - Gold prices experienced a decline as traders became cautious about further monetary easing after conflicting views from US Federal Reserve officials [1] - The selloff in US equities, particularly in technology shares, led some investors to exit positions in metals to cover losses [1] - Treasury 30-year bond yields rose following policymakers' remarks, causing bullion prices to drop by as much as 0.5% before recovering some losses [3] Group 2 - Federal Reserve Bank of Cleveland President Beth Hammack and Kansas City Fed President Jeff Schmid expressed a preference for slightly more restrictive interest rates to combat high inflation, with Schmid dissenting against the recent rate cut [2] - The Federal Reserve announced plans to purchase $40 billion of Treasury bills per month starting December 12, signaling potential easing ahead [5] - There is ongoing debate regarding the effectiveness of the Fed's reserve management purchases program as a form of quantitative easing [6] Group 3 - Silver prices retreated from an all-time high above $64, influenced by inflows into exchange-traded funds and tightness in the physical market [7] - The iShares Silver Trust (SLV) saw total call open interest reach its highest level since 2021, while total put open interest also hit a record [7] - The cost of buying calls relative to puts has surged to a years-long high, indicating increased market activity and speculation [7]