Bengaluru — Gold prices inched up on Wednesday on a weaker US dollar and lower treasury yields, but the expectation of a US rate rise next week kept a lid on gains. Spot gold was up 0.1% at $1,297.47/oz at 3.53am GMT, while US gold futures for August delivery were 0.1% lower at $1,301.60/oz. "Geopolitical tensions are providing [only] limited support to gold prices … a recovery in the US economy could lead the central bank to have more rate hikes this year, and hence, the upward momentum in gold is not that strong, said Mark To, head of research at Hong Kong’s Wing Fung Financial Group. He said that "$1,300 should be the level around which the gold price is going to move at this moment". US services sector activity accelerated in May, pointing to robust economic growth in the second quarter and strengthening the case for a rise in US interest rates next week. Gold, which is a non-interest-paying asset, could see demand take a hit from higher rates. However, slightly lower US bond yi...
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