London (Reuters)
Today, Tuesday, gold prices reversed their direction as the dollar fell as investors continue to wait for any indication that the Federal Reserve (the US central bank) will slow the pace of interest rate hikes.
And gold was up 0.6% in spot trades to $ 1658 an ounce by 1352 GMT, while US gold futures rose 0.5% to $ 1662.80.
“We are seeing some weakness in the dollar and some rally in other currencies against the dollar, which is pushing gold up again,” said Bob Haberkorn, chief market analyst at RGO Futures.
The dollar index, which measures the performance of the US currency against six other major currencies, fell 0.9%, making gold less expensive for buyers outside the US.
Monday’s survey showed trade activity in the US declined for a fourth straight month, raising bets that the Federal Reserve could ease its monetary policy tightening.
Haberkorn added that if the Federal Reserve raises interest rates to 75 basis points less than the expected amount, this will indicate a slowdown in the rises and lead to a rise in gold, “but gold traders are waiting for something more realistic. “.
Rising interest rates make gold less attractive because it increases the opportunity cost of acquiring non-returnable assets.
For other precious metals, silver rose in spot transactions by 0.4 percent to $ 19.34 an ounce and platinum fell by 0.7 percent to $ 918.35 an ounce. palladium fell 2.1 percent to $ 1,927.25 an ounce.
