Business Standard

Gold edges higher in early Asian hours as dollar slips from 20-year high

Gold prices inched up in early Asian hours as the dollar eased off a 20-year high, offsetting pressure from expectations of the U.S. Federal Reserve keeping interest rates higher to combat inflation

gold

Photo: Bloomberg

Reuters
Gold prices inched up in early Asian hours on Tuesday, as the dollar eased off a 20-year high, offsetting pressure from expectations of the U.S. Federal Reserve keeping interest rates higher for longer to combat inflation.
FUNDAMENTALS
Spot gold XAU= ticked 0.1% higher to $1,739.14 per ounce, as of 0058 GMT. Prices hit a one-month low of $1,719.56 on Monday, following Fed Chair Jerome Powell's hawkish remarks at Jackson Hole symposium on Friday.
U.S. gold futures GCv1 rose 0.1% to $1,751.7.
The dollar index USD= was off a two-decade high hit on Monday, while the benchmark 10-year yields US10TY=RR pulled back from a two-month high hit in the previous session. USD/
The message from the world's top finance chiefs is loud and clear: rampant inflation is here to stay and taming it will take an extraordinary effort, most likely a recession with job losses and shockwaves through emerging markets. (Full Story)
While gold is considered a safe bet during economic uncertainty, interest rate hikes increase the opportunity cost of holding the non-yielding asset.
Minneapolis Fed President Neel Kashkari said on Monday he felt the stock market selloff that followed Powell's hawkish speech on Friday shows investors understand the central bank is serious about reducing inflation. (Full Story)
Markets are now largely pricing in a 75-basis-point rate hike at the Fed's September meeting.
SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.38% to 980.61 tonnes on Monday from 984.38 tonnes on Friday. (Full Story)
Spot silver XAG= dipped 0.1% to $18.73 per ounce, platinum XPT= fell 0.2% to $862.72 and palladium XPD= rose 0.4% to $2,155.68.
DATA/EVENTS (GMT)
0130 Australia Building Approvals July
0130 Australia Building Approvals Total YY July
0900 EU Consumer Confid. Final Aug
1200 Germany CPI, HICP Prelim YY Aug
1400 US Consumer Confidence Aug

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 30 2022 | 9:59 AM IST

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