Gold lower, and could drop further, as dollar strength persists
Platinum traded higher, while palladium has dipped after hitting a 12-week high
Bengaluru — Gold prices inched lower on Tuesday, as the dollar rose on the expectation of a US interest rate increase later in September, and on concern that the China-US trade war could escalate. Spot gold was down 0.2% at $1,193.07 an ounce at 2.58am GMT. US gold futures were mostly steady at $1,199.60 an ounce. "With the greenback supported by expectations of higher US interest rates, this may translate to nothing but further pain for gold," said Lukman Otunuga, Research Analyst at FXTM. Spot prices could drop to $1,185-$1,160 levels in the short or medium term, Otunuga said. Strong US payrolls data last week cemented expectations that the US Federal Reserve will raise interest rates in September, in what would be its third hike this year, with expectations of one rise more in December. Higher rates increase bond yields, making nonyielding bullion less attractive, and tend to boost the dollar. The dollar index, which measures the greenback against a basket of currencies, was up 0...
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