Spot gold falls to lowest since July 28 on concerns US Fed will again hike rates
Many Kikuyu voted overwhelmingly for him in a welcome sign that policy trumped tribal loyalty
Deputy president says local govenrment must collect from consumers or face consequences
The party’s internal leadership contest in December is expected to gain momentum once the the nomination process kicks off
Toyota and Panasonic suspend operations in China amid heatwave and drought, which is drying up reservoirs behind hydro dams
Spending allocations to increase to R812bn for the next three years, says finance minister
Food Safety Agency tells retailers and food producers it will seize vegan products with names that it says are for meat
Justice department chief insists the ongoing investigation into Trump would be ‘severely compromised’ if the affidavit is released
England captain leads fight back but Jansen and Maharaj put on 72 for seventh wicket to put SA in control
William Ruto wins Kenya’s election, the Marikana massacre commemorated, India celebrates 75 years of independence, protests in Cape Town, and more
Bengaluru — Gold prices steadied after early losses on Monday, buoyed by lower Treasury yields and a slight pullback in the dollar, while investors braced for a 75-basis-point (bp) interest rate hike by the US Federal Reserve this week.
Spot gold was unchanged at $1,725.17 per ounce at 4.32am, after declining 0.2% in early deals. It had hit a more than one-week high on Friday. US gold futures eased 0.2% to $1,723.40 per ounce.
The dollar was down 0.1% against its rivals, making greenback-priced bullion less expensive for buyers holding other currencies, while the benchmark US 10-year Treasury yields hovered near eight-week lows.
“The fall in US yields on the back of global recessionary concerns has underpinned gold,” said Stephen Innes, managing partner at SPI Asset Management. “Today [Monday], we could be seeing a touch of indecision ahead of the Federal open market committee [meeting] which is likely to underscore the Fed dilemma of fighting inflation at the expense of growth.”
The main focus this week will be on the US central bank's two-day policy meeting, which concludes on Wednesday, and markets are pricing in a 75-bp rate hike.
Last week, the European Central Bank joined its global peers in the fight against soaring inflation as it raised interest rates by 50 bps and is expected to raise rates until inflation falls back to its 2% target.
Though gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion.
Gold prices have dropped more than $350, or 16%, since scaling above the $2,000-per-ounce level in early March due to the Fed's rapid rate hikes and the dollar's recent rally.
Asian stocks lost ground on Monday, retreating from over three-week highs as worries about a global economic downturn sapped risk appetite.
Spot silver was steady at $18.58 per ounce, platinum eased 0.2% to $871.43, and palladium slipped 1.5% to $2,001.62.
Would you like to comment on this article? Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.