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Monday, July 4, 2022

Gold Prices Edge Lower on Firmer Dollar

Gold Prices Edge Lower on Firmer Dollar© Reuters. Gold dips on firmer dollar

Investing.com – Gold prices edged lower on Wednesday weighed down by gains in the dollar and improving risk appetite which dampened safe haven demand for bullion.

for June delivery on the Comex division of the New York Mercantile Exchange were down $1.70 cents or 0.13% to $1,347.90 a troy ounce by 04:33 AM ET (08:33 AM GMT).

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.17% to 89.37. A stronger dollar makes dollar-denominated commodities, including gold, more expensive for holders of other currencies.

to markets as concerns over trade friction between the U.S. and China and tensions in the Middle East subsided.

Stronger market sentiment dampened safe haven demand for gold, which is often sought by investors as a store of value during times of market turmoil and political tensions.

The precious metal was also held in check by the prospect higher interest rates.

Recent U.S. economic data and have continued to point to two or three more rate hikes this year, a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

In other precious metal trade, were up 0.32% to $16.84 a troy ounce, while gained 0.69% to trade at $946.50.

Among base metals, added on 1.02% to trade at $3.112 a pound.

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Source: Investing.com

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