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Thursday, July 7, 2022

Gold Prices Rise As Dollar Pares Gains

Gold Prices Rise As Dollar Pares GainsGold prices were higher on Thursday, rising above the $1,300 level

Investing.com – Gold prices were higher on Thursday, rising above the $1,300 level as the dollar lost the momentum from a decision by the U.S. Federal Reserve to raise interest rates.

for August delivery on the Comex division of the New York Mercantile Exchange were up $0.3 or 0.02% to $1,301.60 a troy ounce by 11:08 PM ET (03:08 AM GMT), supported by a softer dollar.

Gold prices jumped to $1,303.2 from below the $1,300 level overnight after the Fed’s rate hike decision hit the markets. The prices have held on well above the $1,300 level since then.

Gold prices are denominated in U.S. dollars, so the movement of the impacts the gold price. On Thursday, the U.S. dollar index that measures the greenback’s strength against a basket of six major currencies was down 0.03% to 93.53, giving up gains despite a promising outlook for the U.S. economy.

The Fed hiked rates by 25 basis points to a range of 1.75% to 2% and hinted at two more rate hikes later in the year, instead of only one previously. This would mean four rate hikes this year.

Gold investors continued to eye the rate hike decision for signs that the dollar go on an upswing. A firmer U.S. dollar makes dollar-denominated assets such as gold more expensive for foreign buyers, and vice versa.

Other metals were all trading lower, with July down 0.01% to $16.990 a troy ounce, July losing 0.41% to $900.6 and July also diving 0.43% to $3.241 a pound.

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Source: Investing.com

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