Home Business Gold retreats from three-week high as firmer dollar dulls appeal

Gold retreats from three-week high as firmer dollar dulls appeal

3 min read
Comments Off on Gold retreats from three-week high as firmer dollar dulls appeal


Article content

Gold prices slipped on Monday from a three-week high scaled in the previous session, as the U.S. dollar regained some ground, making greenback-priced bullion more expensive for holders of other currencies.

Spot gold was down 0.6% at $1,670.29 per ounce, as of 0230 GMT. Bullion prices surged 3% on Friday as the dollar fell nearly 2% after U.S. jobs data raised hopes about the Federal Reserve being less aggressive on rate hikes going forward.

Article content

U.S. gold futures edged 0.1% lower to $1,674.30.

Article content

It’s not unusual to see prices retrace against a large move from the prior session, gold is pulling back as the dollar gently rises, said City Index analyst Matt Simpson.

The dollar index reclaimed some lost ground to edge up 0.2%.

Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting.

Investors will now focus on the U.S. inflation data due later this week. The data is likely to shed some light on Fed’s rate-hike move in the upcoming December meet.

“U.S. inflation data has the ability to make or break gold. Whilst markets currently favor a 50 basis-point rate hike, a hot inflation print would likely see odds for a 75 bps increase and send the dollar higher and gold lower,” Simpson added.

Bullion is considered an inflation hedge, but rising interest rates dent the non-yielding asset’s appeal.

On the physical front, World Gold Council said in a note dated Friday, a stable local gold price, weak RMB and economic uncertainty supported gold sales in regions such as Beijing and Shanghai in October.

Spot silver was down 2% at $20.43, platinum fell 1.5% to $946.45 and palladium lost 0.6% to $1,851.68. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips)


Source link

Load More Related Articles
Load More By 
Load More In Business
Comments are closed.

Check Also

China’s Jan factory activity contracts at slower pace – Caixin PMI

[ad_1] Breadcrumb Trail Links PMN Business Article content BEIJING — China’s factory activ…