Investing.com - Gold prices were little changed on Tuesday even after New York Fed President John Williams (NYSE:WMB) said the Federal Reserve “will be likely raising interest rates somewhat.”
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange traded 0.08% lower at $1,224.3 a troy ounce by 1:34 AM ET (06:34 GMT).
Speaking at a community event in New York on Monday, Williams said: “We’re going to do what we’ve been doing, as best we can, we’re going to find a - currently we say ‘gradual path’ of getting monetary policy back to more normal levels.”
The Fed has raised rates three times this year and is widely expected to hike rates again in December.
“Interest rates are still very low,” Williams said. “Our goal here is to keep the economy strong, keep this expansion going as long as possible.”
His comments came after Richard Clarida, the Fed’s newly appointed vice chair, expressed caution over the global growth outlook last Friday and said "that's something that is going to be relevant" for the outlook for the U.S. economy.
Federal Reserve Bank of Dallas President Robert Kaplan also said in a separate interview with Fox Business last week that he expected a growth slowdown in Europe and China.
“The market is very quiet today and appears to be in a holiday mood ahead of the U.S. Thanksgiving,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
The U.S. dollar index that tracks the greenback against a basket of other currencies traded 0.06% to 96.2 by 12:42 AM ET (05:42 GMT).
“The dollar has come under some pressure giving some support to gold,” said Fung.