Gold edges higher as dollar slips from 20-year high
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
* Spot gold 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 rose 0.1% to $1,751.7.
* The dollar index was off a two-decade high hit on
Monday, while the benchmark 10-year yields pulled
back from a two-month high hit in the previous session.
* 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.
* 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.
* Markets are now largely pricing in a 75-basis-point rate
hike at the Fed’s September meeting.
* SPDR Gold Trust , 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.
* Spot silver dipped 0.1% to $18.73 per ounce,
platinum fell 0.2% to $862.72 and palladium rose
0.4% to $2,155.68.
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(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi