Gold gains on dollar retreat

FE Team | Published: August 22, 2023 23:17:39

Gold prices rose above $1,900 an ounce on Tuesday, helped by a slight pullback for the dollar and bond yields as investors await the Jackson Hole Symposium later in the week, reports Reuters.
Spot gold was up 0.4 per cent at $1,901.80 an ounce by 1159 GMT. US gold futures gained 0.4 per cent to $1,930.90.
"At the moment I think it's nothing more than a little bit of dollar correction and bargain hunting at these levels that is helping gold prices," said independent analyst Ross Norman.
"We are not expected see significant moves in gold leading up to Jackson Hole because people will be waiting on the sidelines. But the elephant in the room continues to be U.S. Treasury yields, which are at a 16-year high."
The dollar was down 0.1 per cent against its rivals, making gold less expensive for holders of other currencies, while benchmark 10-year U.S. Treasury yields retreated after hitting levels not seen since November 2007.
Focus now shifts to European Central Bank President Christine Lagarde and US Federal Reserve Chair Jerome Powell at Jackson Hole for a read on the interest rate outlook.
Higher rates increase bond yields, making non-yielding bullion less attractive.
Gold prices are trading below the 50, 100 and 200-day moving averages. Speculators who trade on technical signals regard a break below such moving averages as a bearish sign.
In other metals spot silver edged up by 0.3 per cent to $23.40 an ounce while platinum rose 0.9 per cent to $917.29 and palladium gained 0.9 per cent to $1,256.61.