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Gold prices near nine-month low; Spot gold reaches $1,732.17 per ounce

Gold prices near nine-month low; Spot gold reaches $1,732.17 per ounce

Spot gold was down 0.1% at $1,732.17 per ounce at 0050 GMT. US gold futures dipped 0.1% to $1,730.80. 

Gold prices dropped to their lowest level since Sept. 30 of $1,730.42 per ounce in the previous session.  Gold prices dropped to their lowest level since Sept. 30 of $1,730.42 per ounce in the previous session. 

Gold prices neared a nine-month low on Tuesday, as the US dollar strengthened to its highest level in 20 years, stifling demand for greenback-priced bullion.  

FUNDAMENTALS

* Spot gold was down 0.1% at $1,732.17 per ounce at 0050 GMT. US gold futures dipped 0.1% to $1,730.80. 

* The dollar sat near a fresh 20-year high touched on Monday, making gold more expensive for buyers holding other currencies. 

* Gold prices dropped to their lowest level since Sept. 30 of $1,730.42 per ounce in the previous session. 

* World equities fell on Monday as investors prepare for fresh monthly inflation data that may be seen as potentially influencing the Federal Reserve's path ahead for interest-rate increases. 

* US consumer price index data, a key measure of inflation, is due on Wednesday, and is expected to show prices rose by 8.8% in June from a year earlier. 

* Recent inflation data "has not been as encouraging as I would have liked," Atlanta Fed president Raphael Bostic said on Monday, saying that the lack of month-to-month improvement in the pace of price increases warrants another 0.75 percentage point increase in the federal funds rate when policymakers meet later this month. 

* Higher interest rates and bond yields increase the opportunity cost of holding non-yielding bullion. 

* Benchmark US 10-year Treasury yields steadied after a dip on Monday.

* Euro zone finance ministers said on Monday the fight against inflation was the current priority despite dwindling growth in the bloc, as they were informed of a deteriorating economic outlook by the European Commission.

* Spot silver fell 0.2% to $19.04 per ounce, platinum dipped 7% to $887.89, and palladium dropped 1.3% to $2,133.14. 

Published on: Jul 12, 2022, 8:22 AM IST
Posted by: Mehak Agarwal, Jul 12, 2022, 8:18 AM IST