Gold prices subdued as resilient dollar dampens appeal
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GOLD prices were subdued on Thursday (Sep 8) under pressure as the dollar hovered near a recent peak amid a hawkish US Federal Reserve, while cautious investors also awaited the European Central Bank’s rate action due later in the day.
Spot gold was down 0.1 per cent at US$1,717.38 per ounce, as of 1.35 am GMT.
US gold futures were up 0.1 per cent at US$1,729.90.
The dollar index was up 0.1 per cent, not far from the 2-decade high touched in the previous session.
Fed officials said on Wednesday they still aren’t convinced the worst of the US inflation scare has passed, in comments that teed up a continuation of the central bank’s aggressive interest rate increases.
The US central bank is expected to lift its policy rate by another 50 or 75 basis points at its Sep 20-21 policy meet.
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US economic activity was unchanged in July through late August, although companies reported some easing in labour shortages and price pressures, a Fed report showed on Wednesday.
Focus will be on the European Central Bank meeting, where the central bank is widely expected to raise interest rates by 75 basis points on Thursday to fight runaway inflation.
China held 62.64 million fine troy ounces of gold at the end of August, unchanged from the end-July. The value of its gold reserves fell to US$107.49 billion at the end of August from US$109.84 billion at the end-July.
Spot silver fell 0.4 per cent to US$18.43 per ounce, platinum was 0.3 per cent lower at US$863.71 and palladium dropped 0.7 per cent to US$2,029.23. REUTERS
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