Gold propped up by dollar weakness
The greenback weakened after the Fed said it was ‘prepared to shift the stance of policy’ on rate hikes, raising demand for bullion
Bengaluru — Gold rose on Monday as the dollar fell on the expectation that the US Federal Reserve will halt its rate-hiking cycle for the year, lifting demand for the metal from holders of other currencies. Spot gold was up about 0.5% at $1,291.47 an ounce as of 11.06am GMT. US gold futures gained 0.6% to $1,292.90 an ounce. “We are seeing buyers returning to the market on dips,” said Saxo Bank analyst Ole Hansen, adding that the dollar weakness supported prices. Gold fell about 0.7% the previous session, its biggest one-day fall in about two months on the back of robust US jobs data. But Hansen said demand for gold as a safe haven would remain because “a dovish Fed is more of a potential worry that the US economy is not as strong as the market expects.” The dollar weakened on Monday on growing bets the US Federal Reserve would pause its rate-hike cycle in the coming months after Friday’s comments from chair Jerome Powell. Powell said the central bank would be more sensitive to down...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.