×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now
Picture: GETTY IMAGES/DONAT SOROKINVIA
Picture: GETTY IMAGES/DONAT SOROKINVIA

Bengaluru — Gold prices firmed in choppy trading on Monday, as a weakening dollar buoyed greenback-priced bullion, though gains were capped by some investors turning to riskier assets in Asia.

Spot gold was up 0.2% at $1,856.86 per ounce, at 3.52am. US gold futures edged 0.1% higher to $1,859.40.

“With the three-day holiday in the US, which means lower liquidity than usual, and a lack of top-tier data until Wednesday, we may find that gold will remain nailed to its tight range about $1,850 unless a new catalyst arrives,” City Index senior market analyst Matt Simpson said.

Federal government offices, stock and bond markets, and the Federal Reserve will be closed on Monday for the Memorial Day holiday in the US.

Despite a mostly positive showing since hitting a more than three-month low of $1,786.60 per ounce on May 16, gold prices are on course for a second consecutive monthly fall for the first time since March 2021, down about 2.4% so far.

“A large part of gold's underperformance has been due to investors moving to cash as equity markets fell, while lockdowns in China also dented demand. Typically, June is a bearish month for gold but that seasonal pattern appears to have been shifted forward by one month,” Simpson said.

Asian stocks followed Wall Street higher, while the dollar was pinned near five-week lows, as investors wagered on an eventual slowdown in US monetary tightening, albeit after sharp hikes in June and July.

A weaker dollar makes bullion more attractive for buyers holding other currencies. Higher short-term US interest rates raise the opportunity cost of holding non-yielding bullion.

Spot silver rose 0.1% to $22.13 per ounce, platinum firmed 0.1% to $954.51, and palladium gained 0.8% to $2,079.39.

Reuters

subscribe

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.