Gold holds steady as dollar pauses
A sharp fall on global stock markets could change the metal’s fortunes for the better, but for now its fate is still determined by the dollar
Bengaluru — Gold prices held steady on Wednesday as expectation of more US interest rate increases pressured demand, although the metal drew some support from the dollar coming off a seven-week high. Spot gold was little changed at $1,189.05 an ounce at 5.13am GMT, moving largely within a slim $3 range during the session. US gold futures rose 0.1% to $1,193.20 an ounce. “Some people seem to be expecting a decent snap back in prices but the combination of decent (US) data revisions and inexorable tightening has still got gold on the defensive for now,” said Nicholas Frappell, global general manager at Bullion in Australia. “The recent revisions to jobs data has underscored the upward pressure on US rates and FOMC (Federal Open Market Committee) policy choices.” The dollar slipped further from seven-week highs on Wednesday although underlying support for the greenback remained strong amid a confluence of factors, including a strong US economy and a steady path for rate hikes by the Fe...
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