iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Gold prices are stable as the US currency remains strong

8 Aug 2023 , 10:41 AM

In early Asian trading on Tuesday, gold prices remained unchanged as the dollar recovered some ground. Investors were waiting for the U.S. inflation data due this week to determine whether further rate hikes were likely.

Spot gold was unchanged at $1,935.39 per ounce, and U.S. gold futures were likewise unchanged at $1,970.

The dollar’s strength against other major currencies increased by 0.2%, increasing the cost of bullion for holders of other currencies. 

As officials presented the arguments in favour of and against another interest rate increase on Monday, the contours of the dispute at the centre of the Federal Reserve’s policy decision next month were more apparent.

According to Fed Governor Michelle Bowman, additional interest rate increases will probably be required to bring down inflation to the U.S. Federal Reserve’s 2% target.

The potential cost of owning zero-yield bullion increases when rates are raised since bond yields rise in general.

Investors are anticipating Thursday’s consumer price index data for clues about the direction of the Fed’s monetary policy.

On Monday, a key market indicator of long-term inflation expectations for the euro area reached its highest level in more than ten years, as investors anticipate that future consumer price hikes will be much higher than their pre-COVID averages.

According to a source familiar with the situation who spoke to Reuters, Turkey’s Treasury intends to set a cap on the imports of unprocessed gold to lessen the impact of such imports on the current account balance.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.3% on Monday. 

Platinum prices slipped 0.3% to $917.06 and spot silver prices fell 0.2% to $23.09. At $1,241.02, palladium was up 0.1 percent.

For feedback and suggestions, write to us at editorial@iifl.com

Gold slips as comments from US Fed governor dent sentiment

Related Tags

  • FED
  • gold
  • inflation
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.