Gold steadies near one-week high on weaker dollar

GOLD prices steadied near a one-week high on Wednesday (Dec 21), after rising more than 1 per cent in the previous session as the dollar weakened after the Bank of Japan’s (BOJ) surprise policy tweak.

Spot gold was flat at US$1,816.94 per ounce as of 0031 GMT. US gold futures were up 0.1 per cent at US$1,827.10.

The dollar index was flat after falling on Tuesday as the yen jumped to a four-month high after the BOJ stunned markets with a surprise tweak to its bond yield control programme.

A weaker dollar makes bullion more appealing among overseas investors.

Last week, Federal Reserve chair Jerome Powell said the US central bank will deliver more rate hikes next year, even as the economy slips towards a possible recession.

Gold is seen as an inflation hedge, but higher interest rates raise the opportunity cost of holding the asset.

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Gold ticks lower on rate hike fears, firm dollar

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The pace of Swiss gold shipments to Asia and the Middle East slackened in November as prices rose, with exports to countries including China and Turkey falling from October’s level, Swiss customs data showed on Tuesday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2 per cent to 913.88 tonnes on Tuesday.

Spot silver fell 0.2 per cent to US$24.12, platinum lost 0.2 per cent to US$1,006.16 and palladium rose 0.1 per cent to US$1,734.03. REUTERS