PRECIOUS-Gold's relief rally fizzles as dollar firms on recession risks

PRECIOUS-Gold's relief rally fizzles as dollar firms on recession risks
2022-09-29T07:14:14+00:00

Shafaq News/ Gold prices retreated on Thursday as the U.S. dollar firmed on concerns that rising interest rates would spark a global recession, making greenback-priced bullion more expensive for overseas buyers.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,656.59 per ounce, as of 0142 GMT. In the previous session, bullion rose as much as 2%.

* U.S. gold futures dipped 0.2% to $1,667.10.

* The dollar index was up 0.2%, although the unit retreated from a two-decade peak overnight as the sterling rallied following the Bank of England's purchase of UK government bonds to restore financial stability in markets. [USD/]

* The lack of clear progress on inflation means the U.S. central bank needs "moderately restrictive" interest rates that should reach a level between 4.25% and 4.50% by the end of this year, Atlanta Fed President Raphael Bostic said on Wednesday.

* Gold prices have fallen 20% since scaling above the key $2,000 per ounce level in March, as rapid U.S. monetary tightening made non-yielding gold less attractive and boosted the dollar to multi-year peak.

* The U.S. trade deficit in goods narrowed for a fifth straight month in August amid a decline in imports, which is being driven by slowing domestic demand as the Federal Reserve aggressively tightens monetary policy to tame inflation.

* World Bank President David Malpass warned on Wednesday that it could take years for global energy production to diversify away from Russia, prolonging the risk of stagflation, or a period of low growth and high inflation.

* Spot silver fell 0.4% to $18.82 per ounce, platinum was down 0.6% at $858.54 and palladium dropped 1% to $2,134.52.

Source: Reuters

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