Gold gains on softer dollar, safe-haven demand
Gold prices rose on Tuesday, buoyed by a
pullback in the dollar and safe-haven buying due to economic
slowdown concerns, though prospects of aggressive rate hikes
capped further gains.
* Spot gold rose 0.5% to $1,718.21 per ounce, as of
* U.S. gold futures gained 0.5% to $1,731.30.
* The dollar index inched down 0.2% after touching a
20-year peak in the previous session.
* The euro zone is almost certainly entering a recession,
with surveys on Monday showing a deepening cost of living crisis
and a gloomy outlook that is keeping consumers wary of spending.
* The European Central Bank faces the prospect of raising
interest rates aggressively when it meets on Sept. 8 just as the
economy enters a downturn.
* After Russia halted gas flows via a major pipeline to
Europe, several EU states triggered emergency plans that could
lead to energy rationing and fueling recession fears, with
inflation soaring and interest rates on the rise.
* However, further gains in gold were limited by
expectations that the U.S. Federal Reserve could deliver another
hefty interest rate hike in its fight against inflation during
its Sept. 20-21 policy meet.
* Even though gold is seen as a hedge against inflation and
economic uncertainties, higher interest rates increase the
opportunity cost of holding the non-yielding bullion and boosts
* Spot silver rose 0.9% to $18.32 per ounce, platinum
was 0.7% higher at $851.50 and palladium gained
0.7% to $2,047.68.
0430 Australia RBA Cash Rate Sept
0600 Germany Industrial Orders MM July
0600 Germany Manufacturing O/P Cur Price SA July
0600 Germany Consumer Goods SA July
0830 UK All-Sector PMI Aug
1345 US S&P Global Comp, Svcs Final PMIs Aug
1400 US ISM N-Mfg PMI Aug
(Reporting by Eileen Soreng in Bengaluru; editing by