Gold prices subdued as resilient dollar dampens appeal
Gold prices were subdued on Thursday
under pressure as the dollar hovered near a recent peak amid a
hawkish U.S. Federal Reserve, while cautious investors also
awaited the European Central Bank’s rate action due later in the
* Spot gold was down 0.1% at $1,717.38 per ounce, as
of 0135 GMT.
* U.S. gold futures were up 0.1% at $1,729.90.
* The dollar index was up 0.1%, not far from the
two-decade high touched in the previous session.
* Fed officials said on Wednesday they still aren’t
convinced the worst of the U.S. inflation scare has passed, in
comments that teed up a continuation of the central bank’s
aggressive interest rate increases.
* The U.S. central bank is expected to lift its policy rate
by another 50 or 75 basis points at its Sept. 20-21 policy meet.
* U.S. economic activity was unchanged in July through late
August, although companies reported some easing in labor
shortages and price pressures, a Fed report showed on Wednesday.
* Focus will be on the European Central Bank meeting, where
the central bank is widely expected to raise interest rates by
75 basis points on Thursday to fight runaway inflation.
* China held 62.64 million fine troy ounces of gold at the
end of August, unchanged from the end-July. The value of its
gold reserves fell to $107.49 billion at the end of August from
$109.84 billion at the end-July.
* Spot silver fell 0.4% to $18.43 per ounce, platinum
was 0.3% lower at $863.71 and palladium dropped
0.7% to $2,029.23.
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(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry