Gold stalls on firmer dollar, slower rate-hike hopes; Spot gold hits $1,907.59 per ounce
Lower rates tend to be beneficial for gold, as they decrease the opportunity cost of holding the non-yielding asset.
- Jan 18, 2023,
- Updated Jan 18, 2023 7:45 AM IST
Gold prices were flat on Wednesday as the dollar held firm, although expectations of slower pace of interest rate hikes by the US Federal Reserve limited losses in zero-yielding bullion.
FUNDAMENTALS
* Spot gold was unchanged at $1,907.59 per ounce, as of 0053 GMT. US gold futures GCv1 were flat at $1,910.30.
* The dollar index edged up 0.1%. A stronger dollar tends to make bullion more expensive for other currency holders.
* The US central bank raised rates by 75 basis points (bps) four times last year, before slowing to a 50 bps increase in December. Traders are mostly pricing in a 25 bps rate hike increase at the Fed's next policy meeting.
* Lower rates tend to be beneficial for gold, as they decrease the opportunity cost of holding the non-yielding asset.
* Canadian miner Barrick Gold Corp on Tuesday reported a 13.4% sequential rise in gold production in what could be its highest quarterly output last year.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 909.24 tonnes on Tuesday.
* Spot silver was steady at $23.91, platinum fell 0.1% to $1,038.19 while palladium lost 0.2% to $1,740.64.
Gold prices were flat on Wednesday as the dollar held firm, although expectations of slower pace of interest rate hikes by the US Federal Reserve limited losses in zero-yielding bullion.
FUNDAMENTALS
* Spot gold was unchanged at $1,907.59 per ounce, as of 0053 GMT. US gold futures GCv1 were flat at $1,910.30.
* The dollar index edged up 0.1%. A stronger dollar tends to make bullion more expensive for other currency holders.
* The US central bank raised rates by 75 basis points (bps) four times last year, before slowing to a 50 bps increase in December. Traders are mostly pricing in a 25 bps rate hike increase at the Fed's next policy meeting.
* Lower rates tend to be beneficial for gold, as they decrease the opportunity cost of holding the non-yielding asset.
* Canadian miner Barrick Gold Corp on Tuesday reported a 13.4% sequential rise in gold production in what could be its highest quarterly output last year.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 909.24 tonnes on Tuesday.
* Spot silver was steady at $23.91, platinum fell 0.1% to $1,038.19 while palladium lost 0.2% to $1,740.64.