All Things Newz
Business

Gold edges up but ranged as U.S. Fed meet in focus


Article content

Gold prices edged higher on Tuesday on

the back of a weaker dollar, but were stuck in a tight range as

investors refrained from taking big bets ahead a possible

aggressive U.S. interest rate hike.

Spot gold was up 0.2% at $1,721.29 per ounce, as of

0500 GMT. U.S. gold futures gained 0.1% to $1,720.30 per

ounce.

The dollar slipped for a fourth straight session,

down 0.1% against its rivals, making gold less expensive for

buyers holding other currencies.

“We’re not really seeing a tremendous amount of directional

Advertisement 2

Article content

conviction here. It seems like the market is most importantly

waiting for the Fed announcement,” said Ilya Spivak, a currency

strategist at DailyFX.

“However, markets over the past two weeks have been

consistent with gold picking up and the dollar pulling back,

suggesting they are kind of getting comfortable with where the

rates outlook they think is going.”

The U.S. Federal Reserve is widely expected to raise

interest rates by 75 basis points at the conclusion of its

policy meeting on Wednesday. A hike of that magnitude would

effectively close out pandemic-era support for the economy.

Expectations around a 100-bp rate hike surged after U.S.

annual consumer prices saw their sharpest spike in more than

four decades in June. However, traders dialed down those bets

Advertisement 3

Article content

following recent weak economic readings.

Meanwhile, the European Central Bank may not be done with

big rate hikes after its initial half-point increase last week,

Latvian central bank governor Martins Kazaks said in an

interview with Bloomberg News.

Rising interest rates increase the opportunity cost of

holding non-yielding bullion.

Indicative of sentiment, holdings of SPDR Gold Trust ,

the world’s largest gold-backed exchange-traded fund, fell 0.06%

to 1,005.29 tonnes on Monday.

Elsewhere, spot silver rose 0.4% to $18.48 per ounce,

platinum gained 0.6% to $883.98 and palladium

climbed 0.2% to $2,012.50.

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu

Sahu)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



Source link

Related posts

Backup power line to Zaporizhzhia nuclear plant restored, IAEA says

Currencies pop as dollar slides after U.S. data

IMF says Bolivia should replace fuel subsidies with cash transfers