Gold eases as US dollar ticks up

GOLD prices eased on Wednesday (Dec 28) pressured by an uptick in the US dollar, having risen 2 per cent in the previous session following China’s decision to further ease Covid-19 restrictions.

Spot gold was down 0.2 per cent to US$1,809.58 per ounce as of 0037 GMT. US gold futures fell 0.3 per cent to US$1,818.50.

The dollar index edged up 0.1 per cent, making greenback-priced gold more expensive for overseas buyers.

Bullion prices jumped to their highest level in six months on Tuesday on optimism surrounding decisions by top consumer China to further ease Covid-19 restrictions.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6 per cent to 918.51 tonnes on Tuesday.

The price of gold in Egypt has risen to unprecedented highs as nervous savers seek refuge from a weakening currency and some companies export bullion to raise scarce dollars to fund imports, according to industry experts.

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Spot silver lost 0.4 per cent to US$23.95, platinum slipped 0.5 per cent to US$1,015.17 and palladium fell 0.5 per cent to US$1,821.28.

Japanese factories slashed output for a third consecutive month in November, dragged down by weak demand for machinery products amid a deteriorating global economic outlook. REUTERS