Gold dips on stronger dollar, Fed concerns
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GOLD prices inched lower on Thursday (Sep 15), as a firmer dollar and expectations of big interest rate hikes from the US Federal Reserve diminished the metal’s appeal.
Spot gold fell 0.1 per cent to US$1,693.81 per ounce, as of 1.10 am GMT.
US gold futures were down 0.3 per cent at US$1,704.4.
The dollar index edged 0.1 per cent higher towards recent peaks, making gold expensive for buyers holding other currencies.
Expectations of a more hawkish Fed are pushing some investors to revise how much further bond yields can rise.
Gold is highly sensitive to rising US interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar.
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US producer prices fell for a second straight month in August as the cost of petrol declined further, resulting in the smallest annual increase in a year, which could allay fears of inflation becoming entrenched.
Central bankers must be persistent in fighting broad-based inflation, International Monetary Fund chief Kristalina Georgieva said on Wednesday.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.24 per cent to 960.56 tonnes on Wednesday from 962.88 tonnes on Tuesday.
Spot silver dipped 0.6 per cent to US$19.57 per ounce.
Platinum fell 0.4 per cent to US$902.50 and palladium was flat at US$2,163.43. REUTERS
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