Gold dips, fails to draw inspiration from sharp falls in global stocks
But a weaker dollar offered some support
Bengaluru — Gold prices inched down on Thursday as robust US economic data potentially bolstered the chances of a string of US interest rate hikes over the next year, but a weaker dollar curbed the metal’s losses. The marginal decline came even as Wall Street suffered its worst drubbing in eight months. Spot gold was down 0.2% at $1,192.58 an ounce at 4.30am GMT. US gold futures edged up 0.2% to $1,195.90 an ounce. “Rising interest rates are not good news for gold. People are preferring US treasury bonds as they are more attractive in the current environment over gold, despite the sell-off in equities,” said Ronald Leung, chief dealer, Lee Cheong Gold Dealers, Hong Kong. Data on US producer prices, which rose in September after declining the previous month, and a revision to wholesale inventory estimates for August, added to a hawkish outlook on interest rates. “The Fed is expected to raise interest rates in December but we are not sure about the future hikes as we have to see how t...
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