Gold ticks lower after US Fed chief reaffirms inflation fight
GOLD prices were a touch lower on Thursday (Jun 23), with some support from a weaker dollar and US Treasury yields, after the Federal Reserve's head said the central bank was fully committed to reining in inflation and would try not to spark a recession in the process.
Spot gold was down 0.1 per cent at US$1,835.88 per ounce by 1.09 am GMT. US gold futures also inched 0.1 per cent lower to US$1,837.30.
The Fed is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn, the central bank chief Jerome Powell said on Wednesday.
Powell is due to testify again in Washington DC later on Thursday.
Gold is often viewed as a hedge against inflation and a safe store of value during economic crises, like a recession.
However, the Fed hiking interest rates to fight inflation raises the opportunity cost of holding bullion, which yields no interest.
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The dollar edged down, supporting demand for greenback-priced bullion among buyers holding other currencies.
Benchmark US 10-year Treasury yields also eased, making gold more appealing.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.19 per cent to 1,071.77 tonnes on Wednesday from 1,073.80 tonnes on Tuesday.
Spot silver dipped 0.1 per cent to US$21.38 per ounce, platinum was steady at US$926.33, and palladium firmed 0.1 per cent to US$1,865.17. REUTERS
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