Early on Tuesday in Asian trading, gold prices struggled to find direction as investors prepared for the widely anticipated rate hike and monetary policy hints from the U.S. Federal Reserve over the next two days.
Spot gold was up 0.2% to $1,958.20 per ounce, while U.S. gold futures were down 0.1% at $1,959.90.
The dollar index was almost at a two-week high, which hurt gold because purchasers holding other currencies must pay more for metal when the currency is strong.
Rate increases of one-quarter point from the Fed and the ECB are completely priced in the markets. In light of this, attention will be focused on what Fed Chair Jerome Powell and ECB President Christine Lagarde have to say about the future and their September meetings.
As the opportunity cost of storing non-yielding bullion increases, gold is particularly susceptible to rising interest rates.
A widely watched poll of purchasing managers on Monday revealed that while European company activity shrank more than anticipated in July, U.S. business activity stalled, suggesting that both central banks may be nearing the end of their rate-hike cycles.
Leaders in China promised to provide policy assistance for the economy amid a difficult post-COVID recovery, with an emphasis on increasing domestic demand. However, details were scant, and analysts think officials are unlikely to offer any dramatic stimulus due to concerns about rising debt problems.
Silver spot prices increased by 0.2% to $24.42 per ounce, platinum increased by 0.3% to $959.24, and palladium increased by 0.9% to $1,281.86.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.