Gold prices edge lower on steady dollar, Fed rate-hike jitters

Shafaq News / Gold prices inched lower on Wednesday as the dollar steadied, while the U.S. Federal Reserve’s commitment to tightening monetary policy also weighed on zero-yield bullion’s appeal.

Spot gold was down 0.1% at $1,650.75 per ounce, as of 0125 GMT, while U.S. gold futures were up 0.1% at $1,657.30.

The dollar index was a tad bit higher in early Asian hours, having bounced off its lowest level since Oct. 6 overnight.

The U.S. central bank may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising, Minneapolis Fed President Neel Kashkari said on Tuesday.

Production at U.S. factories rose in September indicating the manufacturing sector remains on reasonable footing despite the Fed’s efforts to hamper demand and lower inflation.

Although traditionally seen as a hedge against inflation, interest rate hikes to control soaring prices have reduced bullion’s appeal since it yields no interest.

Spot silver eased 0.2% to $18.72 per ounce, platinum was 0.3% higher at $909.88 and palladium rose 0.3% to $2,019.75.

(Reuters)