Gold prices tick lower on dollar strength
GOLD inched down on Wednesday (Jun 29) in range-bound trading, as sustained strength in the dollar kept investors away from greenback-priced bullion.
Spot gold was down 0.1 per cent at US$1,818.74 per ounce by 1.05 am GMT. US gold futures also eased 0.1 per cent to US$1,820.30.
The US dollar was steady after sharp gains on Tuesday, making gold less attractive for buyers holding other currencies.
Gold prices were hemmed into a tight range in the previous session as investors were caught between pressure from prospects of higher interest rates and support from recession risks.
US Federal Reserve policymakers promised further rapid interest-rate hikes to bring down high inflation on Tuesday but pushed back against growing fears among investors and economists that sharply higher borrowing costs will trigger a steep downturn.
Although gold is seen as an inflation hedge, higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Benchmark US 10-year Treasury yields eased, providing some support to gold.
The United States imposed sanctions on more than 100 targets and banned new imports of Russian gold, acting on commitments made by the Group of Seven leaders this week to further punish Russia over its invasion of Ukraine.
US consumer confidence dropped to a 16-month low in June, as worries about high inflation left consumers to anticipate that the economy would slow significantly or even slide into recession in the second half of the year.
Spot silver dipped 0.3 per cent to US$20.78 per ounce, while platinum rose 0.6 per cent to US$915.72, and palladium gained 0.8 per cent to US$1,889.46. REUTERS
Share with us your feedback on BT's products and services
