Gold benefits as lower price attracts more buyers
Post-slump buying props up the metal, but a strong dollar and the expectation of further US rate hikes limits interest
Bengaluru — Gold prices rose on Tuesday, propped up by buying after a recent price slump, but a strong dollar and the expectation of further interest rate hikes in the US limited interest in the precious metal. Spot gold was up 0.3% at $1,209.20/oz at 3.32am GMT. US gold futures were flat at $1,217.6/oz. "There’s some very light demand from China and Southeast Asia. We’re just seeing some buying ahead of the first technical support around $1,205," a Sydney-based trader said. Gold prices have declined nearly 12% since mid-April, pressured by a stronger US dollar from an ongoing US-China trade dispute and amid expectations of higher interest rates in the US. The US Federal Reserve is widely expected to raise benchmark lending rates, for the third time this year, at its next policy meet in September. Higher US rates tend to boost the dollar, making greenback-denominated gold more expensive for holders of other currencies. Meanwhile, holdings in SPDR Gold Trust, the world’s largest gold...
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