Gold prices inch higher as dollar advance pauses
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GOLD prices edged up on Thursday (Jul 7) from 9-month lows touched in the previous session, after the dollar paused its rally, alleviating pressure on greenback-priced bullion.
Spot gold firmed 0.2 per cent to US$1,741.87 per ounce by 1.00 am GMT. US gold futures rose 0.2 per cent to US$1,739.80.
The dollar was flat near fresh 20-year highs reached on Wednesday, easing some pressure on gold.
Strength in the dollar dragged gold as much as 1.9 per cent lower in the previous session to its lowest level since Sep 30 at US$1,731.00.
Wall Street ticked upward while oil continued to slide on Wednesday as investors juggled concerns over inflation versus a recession after Federal Reserve minutes showed officials rallied around a large rate hike at their June meeting.
A deteriorating inflation situation and concern about lost faith in the Federal Reserve's power to make it better prompted US central bank officials to rally around an outsized interest rate increase and a firm restatement of their intent to get prices under control, minutes of the Jun 14-15 policy meeting showed.
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The head of the International Monetary Fund (IMF) on Wednesday said the outlook for the global economy had "darkened significantly" since April and she could not rule out a possible global recession next year given the elevated risks.
Benchmark US 10-year Treasury yields steadied on Thursday after gains in the previous session.
Higher interest rates and bond yields lift the opportunity cost of holding non-yielding bullion.
Spot silver firmed 0.1 per cent to US$19.20 per ounce, while platinum fell 0.3 per cent to US$853.25, and palladium gained 1.3 per cent to US$1,929.51. REUTERS
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