new Delhi: gold prices Bullion turned less expensive for overseas buyers on Monday due to a sluggish dollar, although prospects of an interest rate hike by the US Federal Reserve next year remained in check.
spot gold It was up 0.1% at $1,794.60 an ounce as of 0226 GMT. us gold futures rose 0.2% to $1,804.00.
The dollar index slipped 0.1%.
Sleep Despite hawkish moves from the Fed, prices attempted to recoup losses considering the dollar’s bullish reaction and yields are still over-measured, said Yep Jun Rong, strategist at IG Markets.
Bullion on Friday posted its biggest weekly decline since mid-November after Fed Chairman Jerome Powell said the US central bank would hike further next year despite growing recession concerns.
Fed policymakers may need to raise US borrowing costs above their peak of 5.1%, and possibly maintain them into 2024, to take high inflation out of the economy, three of them indicated on Friday. .
Gold is considered a hedge against inflation and economic uncertainties, but rising interest rates reduce the appeal of bullion because the metal pays no interest.
While gold is considered a safe-haven asset, there are instances where prices seem to diverge from safe-haven status when factors such as Fed policies come into play, Yep said.
“A further aggressive push from Fed officials could create a struggle for gold.”
A World Economics survey showed business confidence in China has dropped to its lowest level since at least January 2013, reflecting the impact of rising COVID-19 cases on economic activity and a possible recession next year. indicates.
spot silver Gold rose 0.3% to $23.29, platinum rose 0.5% to $996.36, and palladium rose 0.7% to $1,726.20.
spot gold It was up 0.1% at $1,794.60 an ounce as of 0226 GMT. us gold futures rose 0.2% to $1,804.00.
The dollar index slipped 0.1%.
Sleep Despite hawkish moves from the Fed, prices attempted to recoup losses considering the dollar’s bullish reaction and yields are still over-measured, said Yep Jun Rong, strategist at IG Markets.
Bullion on Friday posted its biggest weekly decline since mid-November after Fed Chairman Jerome Powell said the US central bank would hike further next year despite growing recession concerns.
Fed policymakers may need to raise US borrowing costs above their peak of 5.1%, and possibly maintain them into 2024, to take high inflation out of the economy, three of them indicated on Friday. .
Gold is considered a hedge against inflation and economic uncertainties, but rising interest rates reduce the appeal of bullion because the metal pays no interest.
While gold is considered a safe-haven asset, there are instances where prices seem to diverge from safe-haven status when factors such as Fed policies come into play, Yep said.
“A further aggressive push from Fed officials could create a struggle for gold.”
A World Economics survey showed business confidence in China has dropped to its lowest level since at least January 2013, reflecting the impact of rising COVID-19 cases on economic activity and a possible recession next year. indicates.
spot silver Gold rose 0.3% to $23.29, platinum rose 0.5% to $996.36, and palladium rose 0.7% to $1,726.20.