Gold ticks up as dollar pauses advance; focus on Fed minutes
Reuters · 22 Nov 2022 610 Views

GOLD prices edged up on Tuesday (Nov 22), after retreating as much as 1 per cent in the last session, as the dollar eased, with the focus turning to minutes from the US Federal Reserve’s latest meeting for clues on future rate hikes.

Spot gold rose 0.2 per cent to US$1,740.56 per ounce by 0033 GMT. US gold futures inched up 0.1 per cent to US$1,741.70.

Bullion fell for a fourth straight session on Monday as investors preferred the safety of the dollar to hedge against as fresh Covid-19 curbs in China that fuelled worries over the global economic outlook.

San Francisco Federal Reserve president Mary Daly said on Monday the real-world impact of the US central bank’s interest rate hikes is likely greater than what its short-term rate target implies.

Meanwhile, Cleveland Fed president Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month as it fine-tunes its policy actions to help bring down high inflation.

The Fed’s November meeting minutes are due on Wednesday, with most traders betting on a 50-basis point hike in the December meeting..

High interest rates discourage investing in gold, which does not bear any interest.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2 per cent to 906.06 tonnes on Monday.

The World Platinum Investment Council said on Tuesday it expected a deficit of the metal used in vehicle exhausts, industry and jewellery in 2023 after a hefty surplus this year.

Spot silver advanced 0.4 per cent to US$20.92 per ounce, platinum also rose 0.3 per cent to US$985.30, while palladium added 0.6 per cent to US$1,877.14.

(Source : Reuters) , all rights reserved by original source.