Bengaluru — Gold prices eased on Tuesday, as the dollar strengthened amid encouraging signs from a historic US-North Korea summit and a likely interest rate increase by the US Federal Reserve. That limited demand for gold. Spot gold inched down 0.2% to $1,297.42 an ounce at 3.52am GMT and US gold futures for August delivery were 0.1% lower at $1,301.50/oz. "Dollar has been a big driver for some time now and investors are certainly taking more from that than from easing geopolitical risks in recent runs … I suspect that will be the key driver for the short term," ANZ analyst Daniel Hynes said. The dollar edged up to a three-week high against the yen on Tuesday, bolstered by optimism about a closely watched US-North Korea summit and widely expected US interest rate increase from the Federal Reserve. The Federal Open Market Committee (FOMC) starts its two-day meeting later in the day. "We are all waiting for the Fed meeting, the FOMC should be more of the focus for the market," said Ma...
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