Solid Gold Berjangka | Gold Edges Higher as Dollar Strength Eases After PBOC Fixing

07:19 09 August in Commodity, SOLID GOLD BERJANGKA | SOLID GROUP

Gold edged slightly higher as the dollar pared gains, after the US currency surged on Tuesday amid concerns over weak Chinese economic data.

The currency slipped against China’s, which extended gains driven partly by a stronger-than-expected yuan fixing on Wednesday. The greenback typically moves in the opposite direction to bullion.

Bullion also got a boost as 10-year US Treasury yields dropped to 4% in Asian trading. Higher yields are typically negative for gold, which doesn’t generate interest.

Looking ahead, US consumer price index figures coming on Thursday may illustrate more of the moderate price growth that policymakers want, potentially taking the pressure off the Federal Reserve to keep hiking rates.

Spot gold climbed 0.3% to $1,930.90 an ounce at 2:45 p.m. in Singapore, after falling 0.6% on Tuesday. The Bloomberg Dollar Spot Index slipped 0.2%, following a 0.4% gain in the previous session. Silver and platinum rose, while palladium dipped.

Source: Bloomberg


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