Gold, Precious Metals Creep Higher as Dollar Rally Pauses
By Ambar Warrick
Investing.com-- Gold prices edged higher on Thursday, with most other precious metals marking small gains after a rally in the U.S. dollar appeared to have paused.
As of 2056 PM ET (0057 GMT), spot gold was trading 0.1% higher at $1,767.41 an ounce. Gold futures fared better, up 0.4% at $1,783.60 an ounce.
Platinum futures rose 0.1%, while Silver futures added 0.6% after plummeting 1% over the past two days.
Gains in precious metal prices came as the U.S. dollar cooled after a two-day rally. The dollar index surged nearly 1% in the past two days after hawkish comments from two Federal Reserve members drove up expectations of sharper interest rate hikes this year.
San Francisco Fed President Mary Daly and Chicago Fed President Charles Evans both signaled that inflation is yet to cool in the country, and the Fed was likely to raise rates even further to combat rising prices.
A potential escalation in U.S.-China tensions had also driven safe haven demand for the greenback.
The U.S. Dollar Index was trading down 0.1% in Asian trade on Thursday. U.S. Dollar Index Futures fell in a similar range.
While gold appears to have gained some ground in the past two weeks, the outlook for the yellow metal is dulled by the prospect of rising interest rates this year. Most other precious metals are also expected to see muted price action as the Federal Reserve continues to tighten monetary policy.
In industrial metals, Copper futures sank 0.2% to $3.4710 a pound. Zinc futures dropped 0.8%, while Nickel futures rose marginally.
Copper prices dropped sharply this week following a swathe of weak manufacturing PMIs from across the globe. This trend of weakening factory data is expected to weigh on industrial metals in the coming months.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or