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Monday, July 4, 2022

Gold Prices Gain on Weaker Dollar

Gold Prices Gain on Weaker Dollar© Reuters.

Investing.com – Gold prices gained on Tuesday in Asia as the dollar declined on easing U.S.-China trade worries.

for February delivery on the Comex division of the New York Mercantile Exchange traded 0.3% higher at $1,242.9 a troy ounce by 1:05 AM ET (06:05 GMT). 

The that tracks the greenback against a basket of other currencies last traded at 96.667, down 0.31%.

The index fell after U.S. President Donald Trump and his Chinese counterpart Xi Jinping promised to halt the introduction of new tariffs for 90 days, according to Chinese Foreign Minister Wang Yi.

The dollar also lost its upward momentum in recent days on dovish signals from the Federal Reserve, which has indicated a possible pause in interest rate hikes after a widely-expected December increase.

“Gold is now less worried about the Fed and is starting to see inflationary signs from crude, agriculture and non-tariffs,” said George Gero, precious metals analyst at RBC Wealth Management in New York.
Yet some remained sceptical that bullion prices would continue getting a strong bid in coming days.

“The big question on everyone’s mind is where do we go from here with gold?” industry executive and commentator Walter Pehowich asked in his precious metals note.

“In my opinion, I expected a significant sell-off in the Dollar Index after the news, and that just didn’t materialise. So for that reason, I don’t expect the price of gold to show a sustained rally at this time.”

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Source: Investing.com

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