HomeBusinessGold Pulls Back on Dollar Strength, Hawkish Fed View

Gold Pulls Back on Dollar Strength, Hawkish Fed View

Gold prices fell on Thursday, as prospects of a hike in US interest rates and a weak outlook for global economic growth strengthened the dollar.

On Wednesday, spot gold was down 0.3% at $1,653.79 an ounce as of 0404 GMT, after rising nearly 2% in its biggest daily gain since March. US gold futures slipped 0.5% to $1,662.40.

“The strong US dollar is putting pressure … the market is seeking certainty and stability that appears to be in short supply lately,” said Michael Langford, director of corporate advisory firm Airguide.

“We expect gold to stage a relief rally towards $1,680/oz without any further updates or market events.”

The dollar index advanced 0.2%, buoyed by renewed pressure on the pound, moving towards recent 20-year highs. Benchmark 10-year yields were also inching towards their recent multi-year peak.

Gold is traditionally viewed as a hedge against inflation and economic turmoil, but its price has fallen 20% since rising above the key $2,000 an ounce level in March, as a bullish US Rate increases reduce the appeal of the non-yield metal.

Peter Fung, Head of Dealing at Wing Fung Precious Metals, said that high rates coupled with frequent outflows from ETFs (exchange traded funds) are driving investors towards the dollar instead of gold.

Atlanta Fed Chairman Rafael Boustik said on Wednesday that his baseline outlook is for the US central bank to increase by three-quarters of a percentage point in November’s policy meeting and half a percentage point in December.

Spot silver fell 0.7% to $18.76 an ounce, platinum fell 1% to $855.10 and palladium fell 1.24% to $2,128.51.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.


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