SINGAPORE, July 17 (Reuters): Gold ticked higher on Thursday to trade just above $1,300 an ounce as buyers emerged after a recent sharp drop in prices, but it was still near a four-week low as investors weighed the possibility of a sooner-than-expected hike in US interest rates.
Gold has been under pressure after Federal Reserve Chair Janet Yellen said on Tuesday the US central bank could raise rates earlier or faster if hiring and wages take off in an unexpected way.
Higher rates would encourage investors to withdraw money from non-interest-bearing assets such as gold.
Strong US manufacturing and housing data on Wednesday also stoked fears that a strong economic recovery could prompt the Fed to act soon.
"There is some bargain-hunting at these levels after the big drop earlier this week but the sentiment is still predominantly bearish," said one Singapore-based precious metals trader.
Spot gold climbed 0.2 per cent to $1,301.51 an ounce by 0307 GMT, after rising 0.4 per cent in the previous session, snapping its biggest two-day decline since December. The metal fell to a four-week low of $1,291.70 earlier in the week.
Prices could see some technical momentum if they break through $1,305, the trader said. Asian equities gained on Thursday, lifted by another record-high close on Wall Street, while the euro probed recent lows against the dollar amid speculation the Fed is tilting toward tighter monetary policy in light of a stronger economy.
In a sign of waning investor sentiment, SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 2.7 tonnes to 806.03 tonnes on Wednesday.
Gold above $1,300 on bargain-hunting
FE Team | Published: July 18, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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