Singapore, June 26 (BNA): Gold rose on Monday after a weaker dollar made bullion more attractive to foreign investors, although prices were near three-month lows as traders assessed the prospects of the US Federal Reserve raising rates. Benefit.
Spot gold rose 0.3 percent to $1926.19 an ounce by 0538 GMT. US gold futures also rose 0.3% to $1,936.00, Reuters reported.
Bullion fell nearly 2% in the previous week as hawkish rhetoric from Fed officials suggested more interest rate hikes to tame sticky inflation.
Higher interest rates make non-yielding gold less attractive.
“We are nearing the end of the tightening cycle, but we are not yet at the end where there is still a risk of it being extended, hence the lower price action,” said Christopher Wong, strategist at OCBC FX.
Investors now expect a 72% chance of a rate hike in July, with rate cuts from 2024 onwards, according to CME’s Fedwatch tool.
The dollar index fell 0.2 percent.
Citi analysts said in a note that the downward trend in gold was “partly offset by strong physical consumption from central banks and China and some recession hedges.”
CFTC data on Friday showed that speculators increased their record net position in gold on the Comex by 1,322, to 94,626, in the week ended June 20.
Spot silver jumped 1.5% to $22.75 an ounce, while platinum rose 1.3% to $928.74.
Palladium in the autocatalyst rose 0.8 percent to $1,294.59.
“We expect the downtrend (in palladium) to continue… but we also note the increased risk of short squeeze in the event of any supply disruption or demand surprise to the upside,” Citi analysts added.
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