PRECIOUS-Gold dips as dollar firms, Fed rate hike looms

PRECIOUS-Gold dips as dollar firms, Fed rate hike looms
2022-07-25T06:31:35+00:00

Shafaq News/ Gold prices slipped on Monday, as an elevated dollar and prospects of an aggressive interest rate hike by the U.S. Federal Reserve this week dented demand for non-yielding bullion.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,722.84 per ounce, as of 0110 GMT, after rising to a more than one-week high on Friday.

* U.S. gold futures fell 0.5% to $1,718.70 per ounce.

* The dollar rose 0.1% against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies. [USD/]

* The U.S. central bank will conclude a two-day meeting on Wednesday, and markets are pricing in a 75-basis-point rate hike to combat soaring inflation.

* Although gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion.

* U.S. Treasury Secretary Janet Yellen said on Sunday that the U.S. economic growth was slowing and she acknowledged the risk of a recession, but she said a downturn was not inevitable.

* Last week, the European Central Bank joined its global peers in the fight against soaring inflation as it raised interest rates by 50 bps.

Source: Reuters

Shafaq Live
Shafaq Live
Radio radio icon