GOLD prices inched lower on Tuesday (Jan 10) as the US dollar witnessed an uptick, with traders largely focusing on Federal Reserve chair Jerome Powell’s speech for insights into the central bank’s rate hike path.
Spot gold was down 0.2 per cent at US$1,868.85 per ounce, as of 0033 GMT. US gold futures also slipped 0.2 per cent to $1,873.10.
The dollar index firmed 0.1 per cent after hitting a seven-month low in the previous session. A stronger dollar makes bullion expensive for other currency holders.
The focus is on Powell’s speech at a central bank conference later in the day.
The event comes against the backdrop of Fed policymakers saying this week’s inflation data will help them decide whether they can slow the pace of rate hikes at their upcoming meeting, to just a quarter-point increase.
The US consumer price index (CPI) data is due on Thursday.
Elevated interest rates dull gold’s appeal as an inflation hedge and raise the opportunity cost of holding the non-yielding asset.
Wage growth across the eurozone is expected to be “very strong” over the next few quarters but real wages are still likely to decline given rapid inflation, a European Central Bank Economic Bulletin article argued on Monday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 915.32 tonnes on Monday.
Spot silver lost 0.1 per cent to US$23.61, while platinum fell 0.1 per cent to US$1,077.32 and palladium was flat at US$1,775.40.
(Source : Reuters) , all rights reserved by original source.
