Gold prices rose for a second day on Tuesday, supported by a weaker US dollar amid uncertainty over when the US Federal Reserve will raise interest rates. Spot gold was up 0.5 percent at $1,261.25 an ounce at 0711 GMT. US gold futures had risen 0.5 percent to $1,262.60 an ounce. Fed Vice Chairman Stanley Fischer said on Monday that economic stability could be threatened by low interest rates, but it was "not that simple" for the Fed to hike.
"Gold is riding on the dollar weakness," said Helen Lau, analyst at Argonaut Securities in Hong Kong. "The US will eventually raise interest rates, but investors still feel that central banks across the world will continue to be accommodative," she said. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), rose for a third straight session on Monday. They were up 0.18 percent at 967.21 tonnes.
Comments
Comments are closed.