Senior refinery technician Vincente Sandoval puts a gold ‘button’ into a furnace to be further refined to form gold doré bars at Newmont Mining’s Carlin gold mine operation near Elko, Nevada, US. Picture: REUTERS/RICK WILKING
Senior refinery technician Vincente Sandoval puts a gold ‘button’ into a furnace to be further refined to form gold doré bars at Newmont Mining’s Carlin gold mine operation near Elko, Nevada, US. Picture: REUTERS/RICK WILKING

Bengaluru — Gold prices inched lower on Tuesday as a firmer dollar outweighed safe-haven demand due to intensifying coronavirus Delta variant cases and ease in bets on early tapering by the US Federal Reserve.

Spot gold fell 0.1% to $1,785.80 an ounce by 3.47am GMT, lingering below an over one-week peak of $1,788.97 touched on Monday. US gold futures eased 0.1% to $1,788.00.

The US dollar, also often seen as the ultimate safe-haven currency, was up 0.1%.

Stephen Innes, managing partner at SPI Asset Management, said that there seemed to be a little bit of demand for dollar but it was not really turning gold off completely because there was a possibility that the Federal Reserve would not push forward any taper agenda at the Jackson Hole symposium.

“However the upside in gold is going to be relatively limited,” Innes said.

Recent data showing sharp drop in US consumer confidence and bigger-than-expected drop in New York Fed’s Empire State manufacturing business index have allayed some concerns of an early policy tightening by the Fed.

Focus is now on US retail sales data due later in the day, as well as the minutes of Fed’s July meeting on Wednesday for cues on the central bank’s stimulus tapering.

“The path of the virus remains central to Fed’s decision-making and the minutes of the July meeting will provide further insights into the debate at the Fed on tapering,” ANZ Research said in a note.

Asian shares declined in early trade on growing anxiety over the spike in the Delta variant infections and turmoil in Afghanistan.

Among other precious metals, silver rose 0.1% to $23.85 an ounce, while platinum eased 0.2% to $1,020.69.

Palladium fell 0.1% to $2,603.51, after hitting a near one-month low in the previous session at $2,575.40.

Reuters

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