Gold stronger for a second session, but rises tempered by higher equity prices
Bengaluru — Gold prices edged up for a second session on Tuesday as the US dollar weakened, but rising equities capped gains amid speculation on when the US Federal Reserve will raise interest rates. Spot gold was up 0.2% at $1,258.68 an ounce at 4.32am GMT when US gold futures had risen 0.3% to $1,259.80 an ounce. Fed vice-chairman Stanley Fischer said on Monday that economic stability could be threatened by low interest rates, but it was "not that simple" for the Fed to hike. "Gold is riding on the dollar weakness," said Helen Lau, analyst at Argonaut Securities in Hong Kong. "The US will eventually raise interest rates, but investors still feel that central banks across the world will continue to be accommodative," she said. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose for a third session running on Monday. They were up 0.18% at 967.21 tonnes. "Markets do not think that the US will continuously raise rates ... Maybe that’s why they (ETFs...
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