Gold dips from one-week high on steady dollar; other precious metals slip
Bullion hit a record high of US$4,549.71 on Dec 26
[BENGALURU] Gold prices dipped on Tuesday (Jan 6), easing from a one-week high reached in the previous session when it rose nearly 3 per cent towards record levels, while other precious metals also pared gains as the US dollar steadied near a two-week high.
As at 9.31 am, spot gold was down 0.3 per cent at US$4,434.50 per ounce. Bullion hit a record high of US$4,549.71 on Dec 26, and finished the year up 64 per cent, its best annual performance since 1979.
US gold futures for February delivery edged 0.1 per cent lower to US$4,445.0.
The US dollar held near a two-week high as trading began in Asia on Tuesday, making greenback-priced bullion more expensive for holders of other currencies, as market jitters from US military action in Venezuela eased.
Minneapolis Federal Reserve president Neel Kashkari on Monday said that inflation is slowly easing, but there is a risk the jobless rate could “pop” higher, increasing the likelihood of a rate cut.
Investors currently expect at least two rate cuts by the US Fed this year while they look to non-farm payroll data due on Friday for more clues.
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Toppled Venezuelan President Nicolas Maduro pleaded not guilty on Monday to narcotics charges after US President Donald Trump’s capture of him rattled world leaders and left officials in Caracas scrambling to regroup.
The US captured Maduro on Saturday, in an operation that reportedly caused civilian deaths, while Trump said Washington would take control of the country.
Non-yielding assets tend to do well in a low-interest-rate environment and during times of geopolitical or economic uncertainty.
Spot silver lost 0.3 per cent to US$76.29 per ounce, after hitting an all-time high of US$83.62 on December 29. Silver ended the year with annual gains of 147 per cent, far outpacing gold, in what was its best year on record.
Spot platinum was down 0.1 per cent at US$2,269.14 per ounce, after rising to an all-time high of US$2,478.50 last Monday. It rose more than 5 per cent earlier in the session to a one-week high.
Palladium traded 1.6 per cent lower to US$1,680.25 per ounce. REUTERS
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