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Gold stalls on firmer dollar, slower rate-hike hopes; Spot gold hits $1,907.59 per ounce

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.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 909.24 tonnes on Tuesday. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 909.24 tonnes on Tuesday.

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.

Published on: Jan 18, 2023, 7:45 AM IST
Posted by: Mehak Agarwal, Jan 18, 2023, 7:40 AM IST