Gold prices edged higher from a 2.5-year low on Monday as the dollar retreated slightly from its two-decade high, offering some support for bullion amid jitters over rising interest rates. American interest.
Spot gold rose 0.1% to $1,645.00 an ounce at 1400 GMT, after falling to its lowest price since April 2020 at $1,626.41.
US gold futures fell 0.2% to $1,652.90.
“Gold isn’t the only game in town when it comes to security. The money is also going into US Treasuries,” said Bob Haberkorn, senior market strategist at RJO Futures.
The outlook for gold hinges on the Federal Reserve, Haberkorn said, adding that “it’s kind of a storm you have to face right now if you’re an investor in gold.”
Rising interest rates in the United States dampen the appeal of zero-yield bullion, while strengthening the dollar and bond yields.
Gold has lost more than $400, or more than 20%, since breaking above the key $2,000 an ounce level in March as major central banks raised interest rates.
However, while the prospect of further rate hikes dampens sentiment towards gold in the present, some analysts say bullion remains supported by recession risks and geopolitical tensions.
“We have a strong dollar and rising US Treasury yields, which would generally drive gold down. However, generally speaking, gold isn’t doing too badly in the scheme of things,” he said. said Ross Norman, an independent analyst.
Offering some support to gold, the dollar index retreated after again hitting its highest level since 2002.
In the physical market, China’s net gold imports via Hong Kong jumped nearly 40% to a more than four-year high in August, data showed on Monday.
Elsewhere, spot silver rose 0.5% to $18.94 an ounce, after hitting its lowest price in more than two weeks earlier in the session.
Platinum jumped 1.1% to $863.09 and palladium added 0.2% to $2,070.30.
(Reporting by Arundhati Sarkar and Brijesh Patel in Bengaluru; Editing by Paul Simao)