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Gold edges higher after hitting a near one-month low

written by Bella Palmer

Spot gold was up 0.2 per cent at $1,738.90 per ounce after hitting its lowest since July 27 at $1,727.01 on Monday

Gold prices edged higher on Tuesday after hitting a near one-month low in the previous session, helped by a slight pullback in the dollar although lingering worries over further aggressive U.S. interest rate hikes kept gains in check.

Spot gold was up 0.2 per cent at $1,738.90 per ounce, as of 0128 GMT, after hitting its lowest since July 27 at $1,727.01 on Monday.

U.S. gold futures gained 0.2 per cent to $1,751.70.

The dollar eased 0.1 per cent against its rivals after hitting a more than one-month high overnight, making gold less expensive for buyers holding other currencies.

U.S. central bank officials have ‘a lot of time still’ before they need to decide how large an interest rate increase to approve at their Sept. 20-21 policy meeting, Richmond Federal Reserve President Thomas Barkin said last week.

Recent hawkish comments from Fed officials have dented bullion's safe-haven appeal. Focus now turns to the Fed's Jackson Hole, Wyoming, symposium due later this week.

Fed funds futures are now pricing in a 56.5 per cent chance of a 75-basis-point rate hike by the Fed in September.

The European Central Bank must keep raising interest rates even if a recession in Germany is increasingly likely, as inflation will stay uncomfortably high all through 2023, Bundesbank President Joachim Nagel said over the weekend.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.15 per cent to 987.56 tonnes on Monday from 989.01 tonnes on Friday.

Spot silver gained 0.2 per cent to $19.04 per ounce, platinum rose 0.3 per cent to $877.70, and palladium climbed 1.5 per cent to $2,023.10.


The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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