Gold eases under pressure from rising rates, lower dollar controls losses

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Gold prices fell slightly on Tuesday,

weighed down by expectations of further interest rate hikes by the

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US Federal Reserve, as a slightly weaker dollar lent some

metal bracket.

Spot gold fell 0.2% to $1,734.69 an ounce in

08:57 GMT after hitting a one-month low at $1,719.56 in the

previous session. US gold futures also fell 0.2%

at $1,746.50.

“Any gold gain is likely to be muted because (Fed chief)

Jerome Powell’s comments highlighted that many interventions

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is still needed to get inflation under control, » said Rupert

Rowling, market analyst at Kinesis Money.

At the Central Banking Conference in Jackson Hole, Wyoming

last week, the Fed and the European Central Bank entered into a

your warmonger, promising every effort to tame stubbornly high

inflation even if economic growth suffers.

« Powell’s speech seems to have finally hit home, which

could make any significant rise in gold very difficult.

We see weakness in gold around $1,730 including a breakout

will draw attention to $1,680 to $1,700,” said Craig Erlam, a senior

market analyst at OANDA.

Although gold is considered a safe bet in economic times

uncertainty, interest rate hikes increase opportunity cost

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to hold bullion.

On the data front, investors will be watching the United States

Consumer confidence report due later today.

While the numbers continue to underscore the trend that the

the economy remains healthy despite high inflation, so gold could

get a slight boost, added Rowling of Kinesis Money.

The dollar index eased on the day after two decades

peak, limiting bullion losses to the price of the greenback.

Spot silver rose 0.1% to $18.76 an ounce, while

platinum was little changed at $863.85. Palladium

fell 0.2% to $2,143.04.

(Reporting by Arundhati Sarkar and Eileen Soreng in Bengaluru;

Edited by Subhranshu Sahu)


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