Gold ekes out gains as dollar rally takes a breather

Gold prices edged higher on Tuesday after hitting a near one-month low in the previous session, helped by a slight pullback in the dollar although lingering worries over further aggressive U.S. interest rate hikes kept gains in check.


Spot gold was up 0.2% at $1,738.90 per ounce, as of 0128 GMT, after hitting its lowest since July 27 at $1,727.01 on Monday.

U.S. gold futures gained 0.2% to $1,751.70.

The dollar eased 0.1% against its rivals after hitting a more than one-month high overnight, making gold less expensive for buyers holding other currencies. [USD/]

U.S. central bank officials have “a lot of time still” before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting, Richmond Federal Reserve President Thomas Barkin said last week.

Recent hawkish comments from Fed officials have dented bullion’s safe-haven appeal. Focus now turns to the Fed’s Jackson Hole, Wyoming, symposium due later this week.

Fed funds futures are now pricing in a 56.5% chance of a 75-basis-point rate hike by the Fed in September.

The European Central Bank must keep raising interest rates even if a recession in Germany is increasingly likely, as inflation will stay uncomfortably high all through 2023, Bundesbank President Joachim Nagel said over the weekend.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.15% to 987.56 tonnes on Monday from 989.01 tonnes on Friday. [GOL/ETF]

Zijin Mining is restarting normal production at its Colombia gold mine, a spokesperson said on Monday, after people from the surrounding community ended more than a week of road blockades.

Spot silver gained 0.2% to $19.04 per ounce, platinum rose 0.3% to $877.70, and palladium climbed 1.5% to $2,023.10.

Source link

Recent Posts

Scan to Download
ios&Android APP

Open trading account and start trading!

Join our happy customers