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Thursday, March 30, 2023

Gold Down as Dollar Strengthens, but Continuous Inflation Concerns Cap Losses

Gold Down as Dollar Strengthens, but Continuous Inflation Concerns Cap Losses
© Reuters.

By Gina Lee

Investing.com – Gold was down on Tuesday morning in Asia, while the U.S. dollar strengthened, even as continuing inflation concerns saw the yellow metal trade close to a more than one-week peak hit during the previous session.

Gold futures were down 0.42% to $1,760.10 by 11:50 PM ET (3:50 AM GMT), after climbing to $1,770.41, its highest since Sep. 23, on Monday. The dollar, which normally moves inversely to gold, was up on Tuesday.

U.S. trade representative Katherine Tai on Monday excluded some Chinese imports from tariffs imposed by former U.S. President Donald Trump. She also called for “frank” talks with China over its failure to keep promises made in the Trump-era trade deal and its industrial policies.

Separately, current U.S. President Joe Biden warned that the government could breach its $28.4 trillion debt limit to enter a historic default unless Republicans add their vote to raise it within the two next weeks.

Meanwhile, data released on Monday in the U.S. showed that factory orders rose a better-than-expected 1.2% month-on-month in August.

In Asia Pacific, Indian gold imports soared 658% in September from 2020’s lower base, with a correction in local prices encouraging jewelers to increase purchases ahead of the upcoming festive season, a government source told Reuters.

The Reserve Bank of Australia also handed down its policy decision earlier in the day, keeping its interest rate unchanged at 0.10%. The Reserve Bank of New Zealand will hand down its decision on Wednesday, with the Reserve Bank of India following two days later.

In other precious metals, silver and platinum fell 0.6%, and 0.7% respectively, while palladium eased 0.2% to $1,900.58.

Source: Investing.com

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