Gold prices dip after rising nearly 3% to fresh record

[BENGALURU] Gold prices dipped on Wednesday (Jan 28), after rising over 3 per cent to a record high just under the US$5,200 mark in the previous session, as the US dollar plunged to a near four-year low amid persisting geopolitical concerns.

Spot gold slid 0.5 per cent to US$5,161.58 per ounce as at 8.25 am, after scaling a record US$5,189.89 the previous day.

US gold futures for February delivery added 1.5 per cent to US$5,158.90 per ounce.

Global stocks rose for a fifth consecutive session on Tuesday, reaching an intraday record as the pace of the US earnings season picked up, while the US dollar sank ahead of a policy announcement from the Federal Reserve.

The US dollar extended losses to sink to a four-year low against a basket of currencies on Tuesday, after US President Donald Trump said the value of the dollar is “great” when asked whether he thought it had declined too much.

Benchmark 10-year US Treasury yields rose after data was released, indicating a loss of consumer confidence.

Spelling bad news for the state of the US economy moving forward, consumer confidence in the country slumped to its lowest level in more than 11½ years in January amid mounting anxiety over a sluggish labour market and high prices.

Trump also added that he will soon announce his pick to serve as head of the US central bank, and predicted interest rates would decline once the new chair takes over.

The Fed is expected to hold rates steady at its January monetary policy meeting, currently underway.

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Gold, silver rise to near record highs on lingering safe-haven demand

Spot silver was down 0.4 per cent at US$112.52 an ounce, after hitting a record high of US$117.69 on Monday. The white metal has already surged 58 per cent so far this year.

Spot platinum lost 0.1 per cent to US$2,638.24 per ounce after hitting a record US$2,918.80 on Monday, while palladium fell 0.9 per cent to US$1,916.89. REUTERS