Gold prices inch higher as dollar advance pauses
July 7 (Reuters) - Gold prices edged up on Thursday from nine-month lows touched in the previous session, after the dollar paused its rally, alleviating pressure on greenback-priced bullion.
FUNDAMENTALS
* Spot gold XAU= firmed 0.2% to $1,741.87 per ounce by 0100 GMT. U.S. gold futures GCv1 rose 0.2% to $1,739.80.
* The dollar was flat near fresh 20-year highs reached on Wednesday, easing some pressure on gold.
* Strength in the dollar dragged gold as much as 1.9% lower in the previous session to its lowest level since Sept. 30 at $1,731.00.
* Wall Street ticked upward while oil continued to slide on Wednesday as investors juggled concerns over inflation versus a recession after Federal Reserve minutes showed officials rallied around a large rate hike at their June meeting.
* A deteriorating inflation situation and concern about lost faith in the Federal Reserve's power to make it better prompted U.S. central bank officials to rally around an outsized interest rate increase and a firm restatement of their intent to get prices under control, minutes of the June 14-15 policy meeting showed.
* The head of the International Monetary Fund (IMF) on Wednesday said the outlook for the global economy had "darkened significantly" since April and she could not rule out a possible global recession next year given the elevated risks.
* Benchmark U.S. 10-year Treasury yields steadied on Thursday after gains in the previous session.
* Higher interest rates and bond yields lift the opportunity cost of holding non-yielding bullion.
* Spot silver XAG= firmed 0.1% to $19.20 per ounce, while platinum XPT= fell 0.3% to $853.25, and palladium XPD= gained 1.3% to $1,929.51.
DATA/EVENTS (GMT)
0130 Australia Trade Balance G&S
May
0600 UK
Halifax House Prices MM June
0600 Germany
Industrial Output MM
May
0645 France
Reserve Assets Total
June
1230 US
International Trade
May
1230 US
Initial Jobless Clm
Weekly
Reporting by Bharat Govind Gautam in Bengaluru; Editing by Amy Caren Daniel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
