New Delhi: gold prices A weakening dollar propelled gains on Tuesday as market participants awaited more clarity on the US Federal Reserve’s rate hike stance.
spot gold It was up 0.7% at $1,752.46 an ounce as of 0442 GMT. We gold futures rose 0.6% to $1,750.10.
Bullion prices had declined nearly 1% in the previous session following sharp comments from US Federal Reserve officials. Fed Chair James Bullard and John Williams said there is still a long way to go in fighting inflation.
DailyFX currency strategist Ilya Spivak said, “Gold is seeing a corrective uptrend after the last session. Besides, the dollar is slightly lower.”
The dollar index fell 0.4%. makes a weak dollar Sleep Cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding non-yielding assets.
Investors’ attention will now be entirely on Fed Chair Jerome Powell, who is scheduled to speak at a Brookings Institution event on Wednesday.
Spivak said, “If Powell’s speech sounds like the tone that the market doesn’t push the hawkish ball forward, gold will soar.”
The ADP National Employment Report and non-farm payrolls data from the US Department of Labor are also due this week. The data may provide some more clues on the Fed’s policy plan.
Meanwhile, Chinese police in Beijing and Shanghai were out in force to prevent further protests against the Covid restrictions.
Michael Langford, director of corporate advisory firm AirGuide, said protests in China, the world’s biggest consumer of gold, and the resulting heavy security presence will hit spending and industrial activity next month, weighing on all metals.
Spot silver rose 1.8% to $21.29, platinum by 1.2% to $1,000.24 and palladium by 1.4% to $1,870.63.
spot gold It was up 0.7% at $1,752.46 an ounce as of 0442 GMT. We gold futures rose 0.6% to $1,750.10.
Bullion prices had declined nearly 1% in the previous session following sharp comments from US Federal Reserve officials. Fed Chair James Bullard and John Williams said there is still a long way to go in fighting inflation.
DailyFX currency strategist Ilya Spivak said, “Gold is seeing a corrective uptrend after the last session. Besides, the dollar is slightly lower.”
The dollar index fell 0.4%. makes a weak dollar Sleep Cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding non-yielding assets.
Investors’ attention will now be entirely on Fed Chair Jerome Powell, who is scheduled to speak at a Brookings Institution event on Wednesday.
Spivak said, “If Powell’s speech sounds like the tone that the market doesn’t push the hawkish ball forward, gold will soar.”
The ADP National Employment Report and non-farm payrolls data from the US Department of Labor are also due this week. The data may provide some more clues on the Fed’s policy plan.
Meanwhile, Chinese police in Beijing and Shanghai were out in force to prevent further protests against the Covid restrictions.
Michael Langford, director of corporate advisory firm AirGuide, said protests in China, the world’s biggest consumer of gold, and the resulting heavy security presence will hit spending and industrial activity next month, weighing on all metals.
Spot silver rose 1.8% to $21.29, platinum by 1.2% to $1,000.24 and palladium by 1.4% to $1,870.63.