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Gold at 2-month low

Gold at 2-month low

Spot gold was down 0.5% to $1,687.70 an ounce as of 0925 GMT.

Gold prices fell to near two-month lows on Thursday as the dollar rose on prospects of a more aggressive rate hike by the Federal Reserve.

Spot gold fell 0.5% to $1,687.70 an ounce by 0925 GMT, after touching its lowest level since July 21. US gold futures slipped 0.7% to $1,697.30.

Carsten Menke, Head of Next Generation Research, Julius Baer, ​​said: “There is a clearly more aggressive US Federal Reserve price in the gold market ahead of next week’s meeting, reflecting the central bank’s determination to fight inflation. “

Menke said, while the general consensus is for a 75-basis-point (bps) increase, some are calling for an increase of 100 bps, which is partly reflected in the gold market, adding that 75 bps Thus, the increase may come as a positive surprise. gold market.

The dollar index was at a two-decade peak last week, as a surprise rise in US August inflation fueled bets for even more aggressive Fed monetary policy. The strengthening of the dollar has made greenback priced gold costlier for overseas buyers. [USD/]

Non-yielding gold, which is highly sensitive to rising U.S. interest rates as it stands to lose out to other interest-paying assets, has fallen by more than $380 since its March peak, when the Fed announced its 2018. Rates increased for the first time since.

Meanwhile, International Monetary Fund chief Kristalina Georgieva said on Wednesday that central bankers should be persistent in fighting broad-based inflation.

“The outlook for gold is bearish… If you look at the largest gold fund (SPDR Gold Trust), we have seen liquidations in ETFs,” said Jigar Trivedi, senior analyst currency and commodities analyst at Mumbai-based Reliance Securities. [GOL/ETF]

“After $1,680, $1,620 is the next support in Gold.”

Among other precious metals, spot silver fell 1.4% to $19.42 an ounce, while platinum rose 0.1% to $906.40.

Palladium fell 1.3% to $2,135.41.

(Reporting by Arundhati Sarkar and Eileen Soreng in Bengaluru; Editing by Vinay Dwivedi)

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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