Gold prices edge lower on firmer dollar

GOLD prices slipped on Monday (Nov 28), as a stronger US dollar made the greenback-priced metal more expensive for buyers holding other currencies.

Spot gold was down 0.2 per cent at US$1,752.66 per ounce, as of 0016 GMT. US gold futures fell 0.1 per cent to US$1,751.80.

The dollar index was up 0.3 per cent.

Most market participants are pricing in a 50 basis-point interest rate increase at the Federal Reserve’s December meeting after minutes of the US central bank’s last policy meeting signalled a slower pace of rate hikes.

Lower interest rates make gold attractive in comparison to interest-yielding assets while weighing on the dollar.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2 per cent to 908.96 tonnes on Friday from 906.93 tonnes on Wednesday.

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Spot silver slipped 1.3 per cent to US$21.31, platinum fell 0.4 per cent to US$976.28 and palladium declined 0.6 per cent to US$1,840.97. REUTERS