Gold prices rose on Tuesday as the US dollar slipped and markets anticipated the release of impending US inflation data that may offer some clues on the pace of future US interest rate increases. The dollar dropped against a basket of major world currencies, reversing some of last week's gains, when it enjoyed its best performance since 2016.
A retreat in the dollar, in which bullion is priced, has helped gold pull back nearly 2 percent from last week's one-month low of $1,306.81 an ounce. Spot gold was up 0.4 percent at $1,327.52 per ounce by 1:34 p.m. EST (1834 GMT), earlier hitting a one-week high of $1,330.89 while US gold futures futures for April delivery settled up $4, or 0.3 percent, at $1,330.40.
While bullion is sometimes seen as a safe haven asset against risk, it benefited little last week from the slide in equities as investors moving out of stocks broadly sought refuge in the dollar. "The weaker US dollar index really provides some underlying support for gold today," said Phillip Streible, senior commodities strategist at RJO Futures. "Some of the investors are a little more confident with the chart action of gold since it held the 50-day moving average."
Meanwhile, silver was up 0.2 percent at $16.57 an ounce, after touching a one-week high of $16.69, while platinum was up 0.3 percent at $973. Palladium was up 0.2 percent at $986.40 per ounce. The autocatalyst metal has slid nearly 14 percent since hitting a record $1,138 in mid-January but remains at elevated levels on expectations that the market will remain in deficit for a while yet.
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