Trade
6 years ago

Gold slips on outlook for US rate hikes

Published :

Updated :

Global gold prices inched down on Tuesday amid expectations for more US interest rate hikes this year.

Spot gold was down 0.2 per cent at $1,317.86 an ounce by 0655 GMT. Last week, prices touched their strongest since Sept. 15 at $1,325.86.

US gold futures were down 0.1 per cent at $1,318.80 an ounce, according to Reuters.

The dollar hit a more than one-week high against a basket of other major currencies on Monday. It was steady at $92.342 on Tuesday.

Investors are betting on further US interest rate hikes after Friday's payrolls data did nothing to challenge the outlook for monetary policy tightening by the US Federal Reserve.

Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

Spot gold may test resistance at $1,329 per ounce, as suggested by a Fibonacci retracement analysis and a triangle, according to Reuters technical analyst Wang Tao.

Among other precious metals, spot silver fell 0.3 per cent to $17.08 an ounce.

Platinum dropped 0.8 per cent to $964.35, after hitting a 3-1/2 month peak on Monday at $973.60.

Palladium was up 0.7 per cent at $1,108.22, after marking a record high at $1,111.40 an ounce.

Share this news