Gold edges higher on softer dollar; set to fall for sixth straight month
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GOLD prices edged higher on Friday (Sep 30), supported by a pullback in the US dollar, but the Federal Reserve’s commitment to stay on an aggressive rate-hike path kept the metal on track for its sixth straight monthly decline.
Spot gold was up 0.2 per cent at US$1,663.79 per ounce, as of 1.10 am GMT. While prices are headed for their biggest weekly gain in 7, it is down 2.8 per cent for the month so far.
US gold futures rose 0.3 per cent to US$1,673.10.
The dollar index held near a 1-week low touched on Thursday, making greenback-denominated gold less expensive for overseas buyers.
Fed policymakers will press ahead with raising US borrowing costs to fight soaring inflation, taking in stride both turmoil in global financial markets and early signs their actions are weakening the job market.
Although gold is considered a hedge against inflation, a series of aggressive US rate hikes this year has dented on the non-yielding metal’s appeal and lifted the dollar to a 2-decade peak.
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Eurozone economic sentiment fell sharply and by more than expected in September, data showed on Thursday, as confidence dropped among companies and consumers, who are also downbeat about price trends in the coming months.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 941.15 tonnes on Thursday from 940.86 tonnes on Wednesday.
Spot silver rose 0.2 per cent to US$18.86 per ounce, platinum was steady at US$865.46 and palladium was up 0.5 per cent at US$2,211.59. REUTERS
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