Last Update: July 05, 2023, 02:13 AM IST
New York, United States (USA)
The US dollar also benefited from the previous volatility, which reduced the demand for gold.
Spot gold was up 0.4% at $1,928.09 an ounce as of 09:31 a.m. EDT (1331 GMT), with trading volume expected to be lower due to a US holiday.
Gold prices edged higher on Tuesday as some traders bet that recent weak US economic data could prompt the Federal Reserve to reconsider its rate-hike trajectory, as well as minutes from the central bank’s last meeting Waiting for further signals as well.
Spot gold was up 0.4% at $1,928.09 an ounce as of 09:31 a.m. EDT (1331 GMT), with trading volume expected to be lower due to a US holiday.
US gold futures rose 0.3% to $1,935.90.
“Weaker than expected US economic data released on Monday including PMI has supported gold. UBS analyst Giovanni Staunovo said market participants will be closely watching upcoming US job market data, noting whether previous US interest rate hikes will slow the US economy.
But the minutes of the Fed’s June meeting on Wednesday “may seem strangely consistent with Jerome Powell’s recent testimony,” Staunovo said.
Investors see about an 86% chance of a 25-basis-point hike in July, according to the CME’s FedWatch tool. High rates discourage investment in zero yielding gold.
The focus this week will also be on non-farm payrolls data, following a decline in US manufacturing in June.
“For the time being, unfavorable conditions for gold include further tightening of 50 bps, more liquidity withdrawals and rates to remain relatively high for some time,” said Nicolas Frapelle, global head of institutional markets at ABC Refinery.
Also on the radar were the latest developments in the US-China trade war, with Beijing restricting exports of semiconductors, electric vehicles and some metals used in high-tech industries.
The US dollar also benefited from the previous volatility, which reduced the demand for gold. [USD/]
Spot silver rose 0.6% to $23.02 an ounce and palladium climbed 0.8% to $1,238.92. Platinum jumped 1.4% to $919.06, and is on course for a third straight session of gains.
“White metals continue to be associated with the performance of gold. That said, economic growth concerns have a bigger impact because those metals have more industrial uses than gold,” Stanovo said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
