Gold dips as US dollar bounces off lows
Tuesday, 20 June 2023
Gold prices slipped in thin trade on Monday, as the US dollar bounced back from the previous session's lows, with markets looking ahead to US Federal Reserve Chair Jerome Powell's congressional testimony later in the week, reports Reuters.
Spot gold was down 0.4 per cent to $1,948.89 per ounce by 8:11 a.m. EDT (1211 GMT). US gold futures fell 0.5 per cent to $1,960.90. Trading is expected to be slow with US markets closed for the Juneteenth holiday.
The dollar index edged up from a one-month low hit on Friday. A stronger dollar makes bullion less attractive for buyers holding other currencies.
The question remains on what would it take to make gold break out of its range-bound trading between $1,940 and $1,980, "given that the events of the last week failed to ultimately do it," Craig Erlam, senior markets analyst at OANDA, said.
Bullion posted a 0.2 per cent weekly fall last week as traders ramped up bets for a July rate hike after Fed officials struck a hawkish tone in their first comments since the central bank this month held interest rates steady after 10 straight hikes.
Spot silver fell 1 per cent to $23.91 per ounce, platinum was down 0.8 per cent to $973.95, while palladium dropped 0.4 per cent to $1,404.85.