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Gold rises on weaker dollar; Fed meeting in focus

Published : Tuesday, 27 July, 2021 at 12:00 AM  Count : 675

Gold rises on weaker dollar; Fed meeting in focus

Gold rises on weaker dollar; Fed meeting in focus

July 26: Gold prices rose on Monday as a softer dollar and concerns over rising coronavirus cases stalling economic recovery lifted demand for the safe-haven metal, while investors awaited the Federal Reserve meeting for policy cues.
Spot gold rose 0.4% to $1,807.73 per ounce by 0829 GMT. U.S. gold futures rose 0.4% to $1,808.80 per ounce.
Gold is drawing support from the risk-off sentiment, as equity markets are falling and the dollar is also slightly weaker, UBS analyst Giovanni Staunovo said.
"Because all other assets are falling, you have (gold) as a hedge and then as soon as this direction changes you liquidate," Staunovo said, adding, the metal is being seen as a short-term trade than a "good opportunity to hold longer term".
Asian shares skidded to their lows for this year as concerns over tightening regulations upended Chinese equities, driving investors towards safe-haven assets like gold.
The U.S. dollar slipped against a basket of currencies, while benchmark 10-year Treasury yields pulled back, reducing the opportunity cost of holding non-interest bearing gold.
Coronavirus cases continued to rise over the weekend with some countries posting record daily increases.
Investor focus now shifts to the U.S. central bank's meeting on Tuesday and Wednesday for more clarity on monetary policy going forward.
Last week, the European Central Bank pledged to keep interest rates at record lows for some time and warned that the rapidly spreading Delta variant of the coronavirus poses a risk to the euro zone's recovery.
"Any dovish news coming from Jerome Powell and his team would be seen as positive for bullion price," Carlo Alberto De Casa, market analyst at Kinesis said.
In other metals, silver gained 0.6% to $25.32 per ounce, palladium rose 0.2% to $2,677.97, and platinum fell 0.5% to $1,056.61.    -Reuters








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