Business Standard

Gold gains 0.3% as dip in dollar to a one-month low boosts appeal

The dollar, a rival safe-haven asset to gold, has been falling broadly alongside a decline in Treasury yields from multi-year peaks, with aggressive easing by the Federal Reserve already priced in.

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Photo: Bloomberg

Reuters
By Bharat Gautam
(Reuters) - Gold prices firmed on Tuesday, as the U.S. dollar weakened to a one-month low for a second consecutive session, making greenback-priced bullion less expensive for overseas buyers.
Spot gold was up 0.3% at $1,858.19 per ounce, as of 0757 GMT, after rising to its highest since May 9 of $1,865.29 on Monday.
U.S. gold futures rose 0.4% to $1,854.40.
The dollar, a rival safe-haven asset to gold, has been falling broadly alongside a decline in Treasury yields from multi-year peaks, with aggressive easing by the Federal Reserve already priced in. [USD/] [US/]
"The weaker dollar has helped gold break back above its 200-day average ... and we're not yet convinced the greenback has seen a low," City Index senior market analyst Matt Simpson said.
Kansas City Federal Reserve Bank President Esther George said she expects the U.S. central bank to lift its target interest rate to about 2% by August, with further action dependent on how both supply and demand are affecting inflation.
Non-yielding bullion, seen as a safe store of value during times of economic crises, tends to become less attractive to investors when U.S. interest rates are raised.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.44% to 1,068.07 tonnes on Monday from 1,063.43 tonnes last week. [GOL/ETF]
European Central Bank President Christine Lagarde said on Tuesday she saw the ECB's deposit rate at zero or "slightly above" by the end of September, implying an increase of at least 50 basis points from its current level.
Shares slid worldwide as disappointing company earnings and fears about slowing global economic growth punctured the mini rally of the last few trading days. [MKTS/GLOB]
Spot silver rose 0.4% to $21.86 per ounce, while platinum eased 0.2% to $956.93, and palladium climbed 1.4% to $2,021.28.
 
(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)

(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: May 24 2022 | 4:20 PM IST

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