Gold surges as the dollar weakens its advance; every eye on Fed minutes
- Gold prices marginally rose on last Tuesday as the dollar fell after dropping as much as 1% in the previous session. Investors are currently turning to the minutes of the most recent U.S. Federal Reserve meeting for direction on prospective rate increases.
- As of 00:33 GMT, spot gold was up 0.2%, or $1,740.56 per ounce. American gold futures rose 0.1% to $1,741.70.
- Spot silver increased by 0.4 percent to $20.92 per ounce, platinum increased by 0.3 percent to $985.30, and palladium increased by 0.6 percent to $1,877.14.
With the dollar weakening and attention shifting to the minutes from the most recent meeting of the U.S. Federal Reserve for hints on potential rate hikes, gold prices marginally increased on Tuesday after falling as much as 1% in the previous session.
As of 00:33 GMT, spot gold was up 0.2%, or $1,740.56 per ounce. American gold futures rose 0.1% to $1,741.70.
As further Covid-19 limitations in China fanned concerns about the future of the global economy, gold declined for a fourth straight session on Monday as investors opted to protect themselves with the protection of the dollar.
According to Mary Daly, president of the San Francisco Federal Reserve, the effect of the U.S. central bank’s interest rate increases in the actual world is probably more significant than what its short-term rate objective suggests.
Meanwhile, Cleveland Fed President Loretta Mester said the central bank could adjust its policy operations to help lower rising inflation and downshift to smaller interest rate raise increments starting next month.
The Fed’s November meeting minutes are forthcoming on Wednesday, and most traders anticipate that the December meeting will result in a 50-basis point increase.
High-interest rates make it difficult to invest in gold, which offers no return.
SPDR Gold Trust, the biggest gold-backed exchange-traded fund in the world, reported on Monday that its holdings increased by 0.2% to 906.06 tonnes.
Last Tuesday, the World Platinum Investment Council stated that following an enormous surplus this year, it anticipated a deficit of the metal used in jewelry, industries, and automotive exhausts in 2023.
Spot silver increased by 0.4% to $20.92 per ounce, platinum increased by 0.3% to $985.30, and palladium increased by 0.6% to $1,877.14.