Finance

Gold prices inch higher as dollar advance pauses

July 7, 2022
Evelyn B. Baskett

Gold prices edged up on Thursday from

nine-month lows touched in the previous session, after the

dollar paused its rally, alleviating pressure on

greenback-priced bullion.

FUNDAMENTALS

* Spot gold firmed 0.2% to $1,741.87 per ounce by

0100 GMT. US gold futures rose 0.2% to $1,739.80.

* The dollar was flat near fresh 20-year highs reached on

Wednesday, easing some pressure on gold.

* Strength in the dollar dragged gold as much as 1.9% lower

in the previous session to its lowest level since Sept. 30 at

$1,731.00.

* Wall Street ticked upward while oil continued to slide on

Wednesday as investors juggled concerns over inflation versus a

recession after Federal Reserve minutes showed officials rallied

around a large rate hike at their June meeting.

* A worsening inflation situation and concern about lost

faith in the Federal Reserve’s power to make it better prompted

US central bank officials to rally around an outsized interest

rate increase and a firm restatement of their intent to get

prices under control, minutes of the June 14-15 policy meeting

showed.

* The head of the International Monetary Fund (IMF) on

Wednesday said the outlook for the global economy had “darkened

significantly” since April and she could not rule out a possible

global recession next year given the elevated risks.

* Benchmark US 10-year Treasury yields steady on

Thursday after gains in the previous session.

* Higher interest rates and bond yields lift the opportunity

cost of holding non-yielding bullion.

* Spot silver firmed 0.1% to $19.20 per ounce, while

platinum fell 0.3% to $853.25, and palladium

gained 1.3% to $1,929.51.

DATA/EVENTS (GMT)

0130 Australia Trade Balance G&S May

0600 UK Halifax House Prices MM June

0600 Germany Industrial Output MM May

0645 France Reserve Assets Total June

1230 US International Trade May

1230 US Initial Jobless Clm Weekly

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Amy

Caren Daniel)

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